The Influence Of Private Equity Investment On The Performance Of ChiNext Listed Companies

Private equity investment refers to an investment mode which mainly invests non-listed companies.China's private equity investment originated in the 1980s and has been developing for more than 30 years.China's private equity investment market has reached more than 1.2 trillion in 2017.The development of private equity investment has been open up a way for small and medium-sized enterprises of our country who have financial difficulties.Data shows that in 2017 more than half of Chinese listed companies have private equity investment background.The establishment of SME Board and ChiNext Market provide a high-quality exit platform for private equity.In the case of China equity investment fund withdrawal in 2017,the proportion of IPO withdrawal cases reached 31.4%.Screening and supervising hypothesis and the certificating hypothesis have been widely accepted by the literature at home and aboard.They think that private equity investment can optimize enterprise capital structure,raise the standard of enterprise management,promote the integration of enterprise resource,and improve enterprise's performance.This paper takes the listed companies on ChiNext Market from 2009 to 2015 as the sample,and takes many financial index of the year when enterprises listed as the research object.This paper uses factor analysis method to derive a few main factors from the enterprise performance evaluation system.This paper constructs a composite indicator to evaluate enterprises performance from the dimensions of profitability,solvency,operation ability and development ability.This composite indicator involves 13 financial indicators used for evaluation of the small and medium-sized enterprise comprehensive indicator of performance.This paper uses comprehensive index as the dependent variable and uses multiple regression analysis to study the relationship between the private equity participation in enterprises,the number of private equity institutions and institutional ownership,private equity participation in company management for enterprise with enterprises' comprehensive performance.The results show that the participation of private equity has no significant impact on the performance of the listed companies.Private equity investment institutions quantity has no significant effect on the listed enterprises performance,but the proportion of private equity has significant negative impact on the listed enterprises performance;the participation of private equity firms in the management of enterprises will have a significant negative impact on the performance of the listed companies.Due to the adverse selection effect of private equity investment,and some of the private equity focus on short-term benefits,the screening and monitoring hypothesis,the certification hypothesis,and other functions of private equity investment institutions did not play a role on Second-board Market in our country.Therefore,our government should improve the private equity investment policies and regulations to guide the healthy and sustainable development of private equity investment.Train private equity investment talents to enhance the professional ability of private equity institutions;Supervision and dredging exit channels are carried out at the same time and let high-quality target investors exit smoothly...