The Impact Of PE On Medium-small High-tech Enterprises' Growth And Development

In these two years,the NEEQ has reformed and expanded significantly,providing great opportunities for medium-small high-tech enterprises to represent themselves around the country.With the help of NEEQ,these enterprises could establish good image and raise a set amount of money.On the other hand,since most of the enterprises in the innovation layer are high-tech and growing companies,the sample selection procedures could be more accurately and easier.Withthe data of innovation layer's enterprises,this paper manages to test whether PE has positive effects on enterprises' management and development.Based on theoretical and empirical analysis,the paper focuses on how PE affects medium-small high-tech enterprises.In this way,the paper will provide enterprises with suggestions about how to choose appropriate PE,improving efficiency of resource allocation among PE and enterprises.In the first part,the paper introduces topics' background,meanings and research method,followed by the literature review of related topics.Then the PE markets and NEEQ innovation layer's history as well as development would be demonstrated in detail.Fourthly,combiningwith actual circumstance,the paper theoretically analyzes four aspects of how PE promotes enterprises' management and development,including reduces financing costs,improves governance structure,solves agency problems and provides extra services,whichcontains decision and management consultation,products advertisement as well as IPO guidance.In the end,the paper empirically tests how PE with different characteristics would help enterprises.The conclusion is PE will help medium-small high-tech enterprises management and development significantly.Furthermore,high share proportion,joint investment and state-owned background could both prominently improve enterprises management.Nevertheless,only joint investment could significantly improve enterprises development.