Research On The Impact Of Private Equity Investment On The Performance Of Listed Companies In New Third Board

The New OTC Market is no longer limited to Zhongguancun science and technology Park,but a nationwide equity trading platform for non-listed company limited by share,which is mainly targeted at small and medium-sized micro enterprises.Small and medium-sized enterprises of today's domestic market cannot meet the listing requirements of traditional Main-Board Market,Small and Medium Enterprise Board Market and Second-board Market,so in order to enable enterprises to leverage the power of the capital market to achieve leapfrog development,more small and medium-sized enterprises have turned to the New OTC Market,a growing capital market.The establishment of its share price quotation transfer system has become a new way for capital to withdraw from the private equity funds that invest in the New OTC Market listed companies,and the listed companies have become another investment hot spot for private equity funds.At present,the domestic scholars' research on the impact of private equity investment on corporate performance still focuses on the Main Board Market or the Growth Enterprise Market,they do not focus on the New OTC Market which is very active in nearly three years.Therefore,it is of great theoretical and practical significance to study the effect of private equity investment on the performance of the new three board listed companies.This article do a full theoretical analysis to study the impact mechanism of private equity investment on the performance of the New OTC Market listed companies,and then choose 480 companies listed on the New OTC Market from 2013 to 2016,divide them into two groups to do a factor analysis,extract the principal component from the three aspects of profitability,solvency and operation ability,get the performance score,and found the average score of enterprises which get the private equity with higher involvement.Take the performance scores as interpreted variable,and there is a PE or not,and the PE's shareholding ratio,the PE's joint investment amouts,the PE's reputation as explanatory variables of the econometric model,then have a regression analysis.The final conclusion is that PE has a positive impact on the performance level of companies listed in the New OTC Market,and PE's shareholding ratio,joint investment amouts and reputation are directly proportional to the performance level of companies listed in the New OTC Market.At the end of the article,according to the results of empirical research,this paper puts forward some suggestions for private equity investment institutions and new third board listed companies respectively.On the one hand,private equity investment institutions should establish a scientific investment philosophy,select the investment enterprise strictly,improve their own standards,establish a good reputation,and strengthen post-investment service management of invested companies;on the other hand,the companies listed on the New OTC Market should focus on their own development and improvement to attract private equity investment,and actively introduce a number of well-known private equity institutions to jointly invest in order to achieve better performance.