An Empirical Analysis Of The Impact Of Private Equity On The Value Of Listed Companies Of China

Since it took birth in the middle of the 20th century,private equity funds have become a worldwide financial tool after 70 years of development.As an effective supplement to traditional finance,it is different from financial institutions such as banks?insurance and trust.Private equity funds have an unique advantage in providing financial support and value-added services to emerging technology industries and SMEs with high growth characteristics.The purpose of private equity is to pursue profitability,using equity investment as a means to provide management and technical support for emerging industries as a strategy to discover corporate value,increase and enhance corporate value,and make the enterprise bigger and stronger as the ultimate goal,and finally get perfect returns.It is a real value investment.How to take fully advantages of the institution of private equity,enhance corporate value,and help China's economic development transformation and upgrading are worthy of further research and discussion.This paper takes the impact of private equity investment on the value of listed companies in China and its effect as the research goal,taking 541 newly listed companies in China in the three years of 2014-2016 as the research sample,using multiple regression analysis to investigate the value recognition effect of private equity investment on excellent enterprises and the impact on the value of IPOs of invested companies,as well as the different performance of companies with private equity in the secondary market.The conclusions are as follows:(1)The ROE and LnEbitda of companies with private equity are significantly lower than those with non-private equity.It shows that the profitability and profit level of institutions with private equity are even worse,reflecting the reverse selectivity of listed companies in China.Enterprises with strong profitability and goodfinancial affairs will not introduce private equity institutions.They are even more reluctant to transfer shares and be supervised by the introduction of external institutions such as private equity.Enterprises with poor profitability and poor profit margins are more inclined to introduce private equity institutions to improve their financial status.At the same time,private equity institutions joining together and investing in the same companies does not reflect they are more certified,but because private equity institutions are willing to reduce their own investment risks.The stateowned enterprises participating in the investment performance are worse than other companies' profitability and profit level.The reason is that the state-owned private equity institutions participate in the invested enterprises only to play the role of guiding funds,in order to support some enterprises in related industries.To be developed,it is neither for profit,nor does it value the profitability and profitability of the company.(2)After the IPO of the enterprise,only the PE institution with foreign investment background is significantly positively correlated with the corporate value TobinQ.There is still a considerable gap between the domestic private equity institutions and the foreign private equity institutions,which only reflects the financial investment.The investment enterprises showed value-added services,indicating that the domestic private equity institutions' investment after the investment value increase,bigger and stronger did not play the level of the top international PE institutions.The corporate IPOs participating in the industrial fund background of the.private equity institutions performed better in the year after the holdings.(3)Enterprises participating in PE have a shorter duration from establishment to listing,reaching a significant level.This paper is divided into five parts.The first part is the introduction of the article,which describes the research background,research significance and research methods of private equity.The second part combs the relevant theories about private equity at home and abroad,and summarizes the research results of private equity by domestic and foreign scholars.The third part is the research hypothesis and model construction of this paper;the fourth part is the empirical analysis and the result of this paper;the last part is the summary and related suggestions.