The Impact Of Private Equity Investment On Business Performance:An Empirical Study Of Companies Listed In China NEEQ Innovation Level

The impact of private equity investment on business performance has always been a key research area in academic circles both at home and abroad.While most studies in this area focused on companies listed on A shares,Small and Medium-Sized Enterprises Board(SME),and Growth Enterprise Market(GEM),little attention is paid to enterprises listed on the National Equities Exchange and Quotations(NEEQ),especially those in the innovation level of the NEEQ system.To fill in such gap and to provide some policy advice for both the development of private equity investment and serve enterprises in the NEEQ innovation level,we will study the impact of private equity investment on the performance of the NEEQ innovation level enterprises.The result of comparative study on financial indicators shows that,the financial indicators of innovation level enterprises without PE support are better than those of innovation level enterprises with PE support in terms of profitability,operating ability,and growth ability,yet worse in terms of solvency;the financial indicators of innovation level enterprises with small PE and start-up PE support are worse than those of innovation level enterprises with large PE and mature PE support in all aspects,and the financial indicators of profitability,operating ability and growth ability are worse than those of innovation level enterprises without PE support.The multiple linear regression analysis shows that innovation level enterprises with PE participation have lower return on equity(ROE)and lower return on assets(ROA)than those without;innovation level enterprises with small PE and start-up PE participation have lower return on equity(ROE)and lower return on assets(ROA)than those with large PE and mature PE,the participation of small PE and start-up PE have significant negative impact on the performance of innovation level enterprises.Concluding from the theoretical and empirical analysis results above,we put forward the following suggestions:(1)Our government should strongly support the development of the local private equity investment industry.(2)Increase local private equity institutions' personnel training on professional management;(3)PE investment institutions should strengthen their post management ability;(4)Innovation level enterprises should choose the right PE according to their own conditions when they plan to introduce PE.