Research On The Impact Of Private Equity On IPO In China’s Growth Enterprises

Private equity as an important participant in the capital markets, not only to provide financial support for the company, but also affect the company’s strategic, operational and financial decisions.Its operating goal is to get as high return on investment.If and only if private equity investment success exits,its operational goal will be achieved.The initial public offering (IPO) is the largest value-added exit way.Stock issuance makes companies scramble for IPO qualification.With the establishment of the growth enterprise market,the exit opportunity of private equity is to increase.How to play the IPO effect in order to encourage listed companies to obtain IPO opportunities,shorten the preparation period,get value added become the focus of academic research.The IPO effect theory of private equity include the "certification" and "supervision" and "grandstanding" hypothesis.Think of the first two that private equity investment can play a role of corporate governance.The latter says private equity play a role of "accomplice".This article is based on the special capital market environment of our country,under the theoretical framework of the private equity’s IPO effect.Using the method of combining theoretical analysis and empirical test to examine how the private equity effect on the IPO opportunity and the preparatory period.And explore its mechanism.This paper includes five parts.The first part is the introduction, starting from the current market environment, introduces the research significance, ideas, methods, innovation and features of this article. Reviews related literature of the influence factors of IPO opportunities and IPO earnings management, IPO effect of private equity.The second part defines the related concepts and expounds the theoretical basis of this paper.The third part is the system background, theoretical analysis and the research hypothesis.Combing the present situation of private equity in China and IPO system evolution. Discussing the mechanism of private equity influence on the IPO opportunities and preparatory period,IPO earnings management.And the research hypotheses are put forward.The fourth part is the empirical research,based on the research observed value of 615 companies applying for growth enterprise market listing.Using Logistics and OLS regression method,empirically test the influence of private equity on the IPO opportunity and preparatory period,IPO earnings management.And using Heck-man two-phase model solve the problem of endogenous.The fifth part is the conclusions and policy recommendations.The study found that:private equity can help companies get the IPO opportunities and shorten preparatory period.Companies which get IPO opportunity, private equity can restrain accrual earnings management,and promote real earnings management.Shows that private equity is to support the "certification" and "supervision" and "grandstanding" hypothesis at the same time in China,to help companies fit for the IPO opportunities.