Research On The Impact Of Private Equity Investment On The Performance Of SMEs

Private placement refers to a private equity investment institution that raises funds in the form of a sale of a limited partnership fund,and then invests in non-listed companies with all or part of the funds,and in the future sells shares and obtains returns through listing reductions,management buybacks,etc.Investment behavior.The vast majority of investment forms are conducted in a non-public form,without the need to disclose the details of the investment.The private fund-based blonde originated in the United States and began to enter the Chinese market in the 1990s.After more than 20 years of rapid development,it has formed a portfolio of investment stages covering different stages of investment such as venture capital,development capital,and M&A funds.The rapid development of China's small and medium-sized enterprises has made great contributions to economic growth.However,due to strict bank approval,policy support,and non-standard operation of SMEs,the financing capacity is not good,and there is no capital support to support the long-term development of enterprises.The emergence of private equity investment funds has provided a new direction for the solution of financing difficulties for SMEs.and.Therefore,it is of great practical significance to study the impact of private equity funds on the business development of invested companies.On the basis of combing relevant research at home and abroad,this paper first analyzes the impact of private equity funds on corporate performance from the theoretical level,including improving financing efficiency,improving governance structure and guiding enterprises to go public.Based on this analysis,this paper selects 415 companies listed on the Shenzhen GEM between January 1,2011 and December 31,2017 as samples.In 2013,there was no enterprise data due to IPO suspension,and multiple regression methods were used.Empirical analysis.The explanatory variable selects the net profit rate of the second year of listing,and explains whether there is private participation in the variable as a dummy variable,as well as the number of private equity,private equity,private equity,and the largest private equity.Influencing factors.The control variables select the GDP growth rate of the company's listing in the year,the net profit rate of the year before the listing,the total assets,the asset-liability ratio and the shareholding ratio of the top ten shareholders.There are five indicators.Then,through regression,the following conclusions are drawn:(1)The involvement of private equity investment institutions will enhance the performance of the company;(2)The higher the reputation of the private placement right investment institution,the more obvious its promotion effect on the company's performance;(3)The greater the number of private equity investment institutions,the better the company's performance;(4)The greater the proportion of shares held by private equity investment institutions,the greater the increase in corporate performance;(5)The shareholding ratio of the largest private equity institutions is significantly correlated with corporate performance.Based on theoretical analysis and empirical analysis,this paper puts forward the policy recommendations for the development of private equity funds in China.It believes that China should guide private equity fuids to change the short-term investment concept,expand the exit channels of private equity funds,and improve the private fund service platform.