The Research On Impacts Of Private Equity Fund On SMEs

In recent years,private equity investment(PE) in China has grown at an alarming rate.China has become the world's third largest financing market players.Such as a springhead,PE provides a new financing channel for SMEs of the strong innovation ability,good momentum of development,sufficient stamina.,because the private equity fund have many advantages such as less restrictive conditions,the relatively low cost of financing,diversification of financing and other advantages.And the more important thing is that private equity investment in the short term can promote the modernization of corporate governance model in SMEs,finally the development of SMEs can became to a higher level.In this paper,according to the real line,The private equity investment in China is in favor of SMEs of science and technology innovation.So,we sleect a company of small and medium-sized intelligent technology in Zhejiang province.In order to,we can study the impact of private equity investment on corporate governance of small and medium enterprises First of all,based on the review of the relevant literature,I I arranged the content of private equity,private equity and corporate governance on corporate governance effect theory.Meanwhile,I I did a theoretical exposition about PE,corporate governance and the impact of private equity on Corporate Governance.Secondly,the corporate governance status of G corporate governance are analyzed.I do research about the basic situation of the company,governance structure and operation mechanism,incentive mechanism,etc.The disadvantages and problems of G company are summarized.And the deep reasons behind these problems are studied.Third,.Ningbo Z Asset Management Co's investment in G company as a case study.In this case study,the impact of three aspects of the analysis which are G company's ownership structure,board structure and operation,management incentive and restraint mechanisms.We can come to the conclusion that private equity investment can have a positive impact on SMEs governance to a large extent.Finally,based on the above study,a conclusion is given.And around the original intention of the study,in order to help the development of SMEs in China,from the enterprise itself,private equity and policy support,and other aspects,recommendations are proposed.