Research On The Influence Of Private Equity Investment On The Value Of Gem Listed Companies

In the 1980 s,private equity investment began to sprout in China.For more than 30 years,under the strong support of the country's policy support and economic environment,private equity investment has developed into an important financing method for Chinese SMEs.The establishment of the GEM in 2009 further reduced the market entry threshold for SMEs and broadened the exit channel for private equity investment institutions.Today,the Chinese government strongly supports innovation and entrepreneurship,the economic environment is flourishing,social investment enthusiasm is high,laws and regulations related to private equity have gradually improved,and the multi-level capital market has also become more complete.We have now entered a new era of equity investment.Private equity investment not only provides companies with a stable source of capital,but also brings them a series of value-added services.Private equity institutions entering the invested company will hold certain equity,participate in the business management and supervision of the company,improve the business status and governance level of the invested company,and enhance the value of the company.On the basis of summarizing the research results of current scholars,this article also studies the specific impact of private equity investment on corporate value from the theoretical and empirical aspects.Theoretically,this paper first introduces the performance forms and calculation methods of corporate value and the characteristics of private equity investment.At the same time,it includes the development of private equity institutions,private equity fund raising,private equity investment events,private equity investment industry distribution,and the withdrawal of private equity funds.Several aspects systematically analyzed the development status of private equity investment in China.This paper expounds the theory of principal-agent theory and financial intermediation that influence the value of private equity investment,and also analyzes the function of private equity institution's selection,supervision and market power of the invested company.Based on this,three hypotheses that private equity investment can enhance corporate value,the proportion of private equity holdings,and the reputation of private equity firms are all positively related to the value of the invested company.Empirically,this article selects high-tech companies listed on the GEM from January 1,2015 to December 31,2016 as samples,through inquiries of companies' prospectuses and various companies' private equity investments recorded in the Zero2 IPO Research Center.Events to determine the PE background of each company,and then obtain financial data of each company through the Oriental Wealth Choice financial terminal.First,the entire sample is divided into private equity investment group and no private equity investment group,and then there will be private equity investment components for the high reputation institutional support group and low reputation institutional support group,respectively,the two groups of indicators for comparative analysis.SPSS 21.0 software was used to descriptive statistics,independent sample T test and multiple regression analysis.As a result,it was found that private equity investment can increase the value of the invested company.The higher the proportion of private equity holdings,the greater the value-added effect of the invested company,and the level of reputation of the private equity organization also has a significant positive correlation with the corporate value.All three hypotheses have been verified.At the same time,by comparing the index of the sample group,it has also been found that companies with private equity investment perform better than those without private equity investment in terms of profitability,capital structure,growth ability,and shareholder structure.Companies that are backed by high reputation institutions also outperform those that are supported by low reputation institutions in the above areas.Finally,according to the research results,this article puts forward corresponding countermeasures and recommendations at the government level,the level of private placements,and the level of invested companies.