A Study Of Private Equity's Impact On The Company Value Of SMEs' Enterprises

China's small and medium-sized enterprises are the main force of China's economic development and economic transformation,but subject to less fixed assets and small scale,leading to its long-term financing problems,restricted development severely.With the process of global economic integration,private equity investment into the domestic and become a new way of investment and financing,and gradually weaken the small and medium enterprises on bank credit,private lending and small and medium enterprises support funding.Private equity investment has been developing rapidly in the course of more than a decade of development,the foundation of the GEM provides a platform for high returns of private equity funds' exit,which are actively involved in providing business funds for small and medium-sized enterprises and actively involved in the business management.They enhance the value of the company which are invested,but also improve China's multi-level capital market and provides a lot of opportunities.In the current financial system,they play a very important role.This paper first studies the domestic and foreign literatures,refine the theoretical basis of the relationship between private equity investment and the value of small and medium-sized enterprises.The study shows that private equity investment will affect the development of small and medium-sized enterprises in many aspects,and the influence on capital structure,corporate governance structure and business performance is the most significant.In the course of the research,the financial intermediary theory,the principal-agent theory and the capital structure theory are analyzed,through the research about the influence on the enterprise's capital structure,corporate governance structure and business performance.And then carry out theoretical research.After the private equity investment entering the invested enterprise,the fund becomes the part of the capital.It improves the capital structure of the enterprise,reduces the enterprise asset-liability ratio and improves its refinancing ability.Second,private equity investment institutions,as one of the shareholders,reducing the company's equity concentration,some professional private equity will become the company's management and participate in corporate decision-making,improving equity checks and supervision mechanisms.Finally,the private sector has professional management team,they will support the business skills innovation,broaden the market channels of invested enterprises to enhance the healthy operation of enterprises and sustained profitability.The GEM provides financing platform for high-tech enterprises and small and medium enterprises.Empirical research are based on 405 Shenzhen GEM listed companies to analysis the difference of whether the private equity investment in the background on the aspects of assets and liabilities,equity concentration and return on net assets.Through the empirical method of statistical analysis and regression analysis,whether the involvement of private equity investment in the enterprise or not,the difference of asset-liability ratio,equity concentration,net assets yield difference is not significant.In the impact analysis,the asset-liability ratio has a negative impact on the value of the firm.The ownership concentration has nothing to do with the value of the firm.The return on net assets is positively related to the company's value.In order to verify the different performance of the listed companies in the background of the private value of the company more intuitively,the article uses the private equity investment as the dummy variable to carry on the significance analysis and the linear regression test to the company value influence,discovered that the private equity investment intervention would has positive impact.