The Impact Of Private Equity On The Value Of GEM Listed Companies

Along with the rapid development of China's capital market over the years,and the continuous improvement of the financial system,market financing demand is also growing,as a novel way of investment capital market private equity investment has become another other than the bank loan and the secondary market financing is an important means of financing.Private equity can broaden the financing sources of the company and promote the value discovery of the invested enterprises.The two aspects are also a highly profitable investment mode.In the current financial market system,private equity investment plays an important role,which greatly influences the development of economy and enterprises.Related literature research results show that the performance and the related value of the enterprise,PE intervention can have a substantial positive effect,and can help enterprises to improve management ability and standardize the governance structure.Contrast is abroad,however,our country started late,in terms of private investment related laws,regulations and policy guidance and market regulation is not perfect,so foreign research result is consistent with our country capital market situation has yet to be.Since the establishment of GEM in October 2009,there have been a large number of private equity investment through the small and medium-sized enterprises that have invested in the gem board,and successfully made a profit and quit.In this paper,based on the relevant data of listed on the gem companies,selected the listing and trading of corporate data since 20092014,with private equity investment direction of the virtual variable as the total private equity investment is studied and the relation between the value of listed companies,and then expanded to the characteristics of private equity investment private equity to what influence on the invested enterprise value,the relevant characteristics including government background of PE,PE foreign background,PE shareholding proportion,the number of involved in PE,PE equity lock-up period and the reputation of PE.Virtual variables including private equity investment in research,this paper reference relevant literature,concluded,private equity investment does not directly change the value of listed companies,but by changing the governance structure of the listed companies and equity structure indirectly affect the value of listed companies,the indirect factors including capital structure,equity checks and balances,equity concentration,chairman of the board of directors is the general manager.Based on theseindirect factors,this paper makes use of the regression model to verify the relationship between PE virtual variables and the value of listed companies,and concludes that private equity investment can improve the value of listed companies.In private investment characteristic Angle in the study,with a foreign background of PE,high reputation of the PE,IPO holding period longer PE and PE high stake can enhance the value of the company,and participate in the number of PE and with government background of PE did not significantly affect the value of listed companies.