The Case Study Of Jinjiang Gufen Introducing Private Equity Fund

With the gradual opening of the capital market policy,the development for several decades,private equity investment fund has began to occupy a seat of equity refinancing market in China.On the one hand,it meets the requirements of diversified financing channels for enterprises in China at the present stage;on the other hand,it promotes the reform of China's joint-stock company.Private equity fund has many advantages.For instance,investment flexibility,no maturity debt pressure,loose repayment,powerful expertise,comprehensive value-added returns,relatively loose government regulation and the simple procedure.Nowadays,private equity investment has developed into a set of effective capital allocation mechanism which focuses on investment,financing and management.Therefore,not only can it provide the necessary funds for the enterprise,but it can bring the supervision and management and utility value for the enterprise.As a kind of efficient capital market financing tool,it provides a choice for the development of enterprises.This paper takes Jinjiang Corporation as the research object.Through summarizing the research situation home and abroad,basing on the related theories,using quantitative analysis,qualitative analysis and case study method respectively to analyze the case of Jinjiang Corporation about introduction of private equity fund.Firstly,to analysis the reasons of introducing private equity fund to Jinjiang Corporation by using qualitative analysis method.It is necessary for it to financing;secondly,introduced the process of Jinjiang Corporation about introduction of private equity fund,core terms and results;thirdly,by using qualitative research and quantitative research and event study these three methods and from the aspects of ownership structure,market value,capital structure and financial ability to analyze the impact about introduction of private equity funds to the Jinjiang Corporation.Finally,to draw conclusions and put forward proposals through the analysis of the case.By analyzing the case,the following conclusions can be drawn,the action that introduces the private equity fund takes place under the background of state-owned enterprises of mixed ownership reform.It has changed the situation,which Jinjiang Corporation ranks on the top.In addition,it improves the corporate governance structure of the company;by applying the method of event study and verification after T test,which verify the positive impact on the stock market;by trying the capital asset pricing model that indicates the capital structure of Jinjiang Corporation has been optimized;for one thing,it increases company's equity capital,for another,it alleviates the pressure of the shortage of funds effectively;however,there are some risks about the introduction of private equity funds,such as the lose of interests among small shareholders,information will be let out in advance;large shareholders may tend to choose the pricing basis that benefits themselves;there also exists the problems that private institutions aim at the deadline to withdraw,at last,it damages the interests of enterprise.Through the case study,we can get the following suggestions: China should actively encourage and cultivate the private equity fund managementtalents,besides,the listed companies should be careful to choose the appropriate private institutions to cooperate with;in order to protect the interests of small shareholders and to establish the model of information disclosure,government should improve the relevant laws and regulations and promote the establishment about the mechanism of market discipline.