The Influence Of Private Equity Involved In Direcional Add-issuance On Enterprise Value

In recent years,the domestic economic development has entered the stage of structural adjustment,transformation and upgrading.Listed companies have been unable to survive in the competitive market relying on single business development,which has stimulated the enthusiasm of listed companies to carry out industrial mergers and acquisitions.In order to meet the financing needs of M&A,listed companies tend to finance through directional add-issuance.Because the private equity investment in the money supply,the resources and ability of acquisition has special advantage,private equity started popping up on the list of directional add-issuance of listed companies.Participating in directional add-issuance of listed companies is a major change for private equity investment targets.In this background,this article measures the enterprise value from two aspects of the share price performance and financial performance of listed companies,and analyses the relationship between private equity investment involved in directional add-issuance of listed companies and corporate value.This article draws the following conclusions:(1)In the short term,there is no significant difference between the share price performance of PE participation and non-PE participation.(2)The participation of PE institutions in directional add-issuance can improve the performance of medium and long term stock prices,which is more obvious when the PE institutions participate in the directional add-issuance for the purpose of strategic investment.(3)The participation of PE institutions in directional add-issuance can improve the financial performance of listed companies,which is more obvious to the listed companies that have obtained the strategic investment of PE institutions.On this basis,this paper puts forward some Suggestions to promote the coordinated development of private equity and listed companies.