Research On The Influencing Factors Of IPO Exit Performance Of Private Equity Investment

Private equity investment is a kind of investment that raises funds in the form of private equity and invests in non-listed companies in the form of equity.It is an investment behavior that maximizes the value of the invested company.China's private equity investment was born in the 1980's.Since 2005,with the rapid development of the overall economic situation,China's private equity investment industry has also developed in a spurt manner.Many private equity investment institutions have received substantial returns.Many companies and individuals have invested their own idle funds in the private equity investment industry.At the same time,as a new investment industry,private equity investment has also greatly promoted the rapid development of China's SMEs.China's current private equity investment industry is still in its infancy,and most of the relevant research focuses on the organizational structure,operation mechanism,exit methods,and the impact on the invested companies of private equity investment.However,the research on the exit performance of private equity investment is not deep enough and normative.What are the factors that influence the exit performance of private equity investment? How to control the influencing factors to improve the exit performance of private equity investment? These issues are increasingly concerned by private equity investment institutions.This article first introduces the development of private equity investment in China,and illustrates the research background and research significance.Summarized domestic and international research on the exit performance of private equity investment.The relevant concepts and related theories of private equity investment are explained.Then combined with the theory and using the multiple regression model,it proves what are the significant factors affecting the IPO exit performance of private equity investment.Through the empirical model and case analysis,it is found that the exit performance of Kunwu Jiuding Investment Zhiwei Food is not only lower than the expected value of the valuation model,but also lower than other private equity investment institutions that have invested in the leisure marinated food industry,and the investment performance was explored using the event research method.Low impact on Kunwu Jiuding stock price.Then,we made an in-depth analysis of the reasons behind the lower than expected performance of Kunwu Jiuding.Finally,we got several reasons that lead to the lower performance of Kunwu Jiuding.It also provided experience and suggestions to other private equity investment institutions.The development of private equity investment is also of great significance.In order to improve the investment performance of private equity investment,the conclusions of this paper are as follows: First,private equity investment institutions should seize the opportunity to withdraw in a timely manner under the premise of scientific research.Second,we must always pay attention to the profitability and growth ability of the invested companies.Again,we must participate in the management of the invested company.Again,we will focus on investing in companies in developed eastern regions and companies in emerging industries.Finally,strengthen cooperation with third-party professional agencies to reduce their investment risks.