Impact Of Private Equity On The Value Of Company

As an important investment and financing method, private equity have a profound impact on the further development of China's capital market. The introduction of new third market not only provides a new exit channel for private equity investment, but also has injected new vitality for the development of China's private equity industry. However, compared with developed countries, China's private equity investment institutions are still developing whether in management or investment experience. In theory, private equity investment company have both "role of certification" and "role of value added". How to promote the private equity investment industry in the new economy context and how to enhance the value of service of PE to the portfolio companies, it has become an important issue of socio-economic development.Taking the value of the company as the research object, based on 355 companies listed on GEM panel data end of 2014, taking GLS regression and quantile regression combination investigate impact of the private equity fund and its background on value of companies listed on GEM, The study found: on the one hand, private equity has not yet significantly reflected its improved effects on value of the GEM listed companies; on the other hand, there are obvious differences in the impact of private equity from different backgrounds on value of the company: Foreign-owned private equity fund to has a positive role in promoting the value of the company; joint venture private equity fund has no obvious impact on promoting the value of companies listed on GEM's; state-owned private equity enhance the role of improving value of the company significantly; private equity fund didn't exist a significant negative effect to enhance the value of the company. Therefore, the Government should step up and improve relevant laws and regulations of the industry, build a healthy capital markets, and relax the private equity funds, creating a healthy competitive environment for the development of the industry. At the same time, we should accelerate the establishment of a sound mechanism for personnel training, provide a rich talent pool for the industry. Moreover, the proposed financing company should strengthen its own technological innovation and enhance their core competitiveness for enhancing the attractiveness to private equity funds.