The Effect Of Private Equity On Investment Efficiency

Private equity has developed rapidly since the 20 th century,and has occupied an important position in the global capital market,the related researches have emerged. As a result of the existence of agency problems and asymmetric information problem,there has been the phenomena of over-investment or under-investment in our listed company.The existence of non-efficiency investment behavior has greatly reduced the efficiency of market-allocated resources.This article selects listed companies 2009 to 2014 date on growth enterprise market,through the establishment of the investment efficiency measurement model,to find out the relationship between private equity and investment efficiency.The empirical results show that:(1) Companies with private equity have more efficient investment.(2) Private equity joint investment can improve the efficiency of corporate investment.(3) Shareholding ratio of private equity has negative correlation with under-investment,but has no significant correlation with over-investment.(4) State-backed private equity can improve the efficiency of corporate investment.The results of this paper show that private equity can effectively alleviate the problem of information asymmetry and agency conflicts through its own authentication and supervision effect, so as to improve the enterprise investment efficiency.This paper investigates the influence of private equity in corporate governance, not only enriched the literature, also provides the certain enlightenment for entrepreneurial companies bring in private equity investment and rationally supervise managers investment behavior.