An Empirical Study On The Impact Of Private Equity Investment On Listed Companies On The Value Of GEM

Whether it is universal innovation or increasingly fierce market competition,many enterprises may encounter capital bottlenecks in the process of development,especially companies listed on GEM are more likely to encounter financing difficulties.It is very difficult for GEM listed companies to obtain funds from traditional financial institutions,which makes private equity investment,a new financing method,develop vigorously in the GEM market.Private equity investment broadens the financing channels of enterprises,making enterprises have more choices in financing,and the experience and technology of private equity investment institutions can be brought into the help of the invested enterprises.As a result,private equity investment has played an increasingly important role in the financial system because of its unique advantages.However,the private equity investment appears late in the GEM market.Most of the studies focus on the exit mode and timing of private equity investment.The research on the impact of private equity investment on the value of listed companies is very rare.There are some research results abroad.However,due to the different market environment,imperfect institutional environment and corporate governance mechanism.Imperfections and so on make it difficult to copy foreign research results to domestic,and the actual situation is often quite different from foreign research results.Firstly,the basic theory is sorted out to serve as the theoretical basis for this study.Then,the theoretical analysis of the impact of private equity investment on the value of the invested enterprises is discussed,including the theoretical analysis of the relationship between capital structure and company value,the theoretical analysis of the relationship between ownership concentration and company value,the theoretical analysis of the relationship between ownership checks and balances and company value,and the chairman of the board of directors.The theoretical analysis of the relationship between the general manager and the company's value is made.Then the research sample of the listed companies on the GEM is selected and the variables are selected to construct the model of the impact of private equity investment on the value of the invested enterprises.First,the descriptive statistical analysis is carried out,including the comparison of asset-liability ratio,M index,equity balance index and whether the chairman is concurrently the managing director.Finally,the regression analysis of the model is carried out.Based on the sample data of the listed companies on the GEM,the following conclusions are drawn: private equity investment has a significant impact on the value of the invested enterprises.Combining theory with practice,this paper makes a detailed analysis of sample data(total sample data,sample data of private equity entry,sample data of no private equity entry),and makes a thorough study of the differences between enterprises that have received private equity investment and those that have not received private equity investment.The conclusion of the study is that private equity investment will have a significant impact on the value of the invested enterprises,and private equity investment can solve the capital problem of the enterprises.Through the process of investment,withdrawal and reinvestment,private equity investment institutions themselves can also make their own development more smoothly.Private equity investment plays a perfect role in the modern governance structure of small and medium-sized enterprises in China,and plays a great role in the management of enterprises listed on the GEM and in promoting the transformation of China's economic structure.