Research On The Market Performance And Factors Of The Establishment Of Buyout Funds By Listed Companies

Since 2014,the development in the M&A market has stimulated the innovation of M&A investment and financing instruments and models,which has also promoted the rapid development of Buyout funds.The Buyout funds established by listed companies and professional private equity investment institutions have not only become M&A activities in China's capital markets.New developments and new breakthroughs have also become the mainstream development model of local Buyout funds.The Buyout fund is an investment target with an undervalued expansion or mature period as the investment target.In order to obtain the control right of the investment object,the value of the equity is increased by means of resource integration,asset restructuring,management optimization,etc.Private equity funds that sell equity in the form of demolition,listing,secondary transfer or management repurchase to obtain investment income.At present,foreign literature research on Buyout funds is more comprehensive,but domestic scholars' research on Buyout funds mainly focuses on qualitative research on the development model and current status of Buyout funds.The literature on quantitative research is almost blank,and it lacks market performance for Buyout funds in-depth discussion.So is the local Buyout fund creating market effect? What factors are affecting the market performance of local Buyout funds? These issues have increasingly become the focus of domestic capital market.This paper has conducted a more in-depth discussion on the market performance of listed companies' merger and acquisition funds.Firstly,this paper quantifies and analyzes the announcement effect of the establishment of Buyout funds in 2011-2018 through the event study method.Based on this,it provides some theoretical suggestions for investors.Secondly,this paper explores the market performance of Buyout funds that affect the establishment of listed companies.Influencing factors of the effect,and finally put forward relevant recommendations toexternal regulators,listed companies and PE institutions.After studying the sample data,the main conclusions of the paper are as follows:First,during the period of the event window in which the listed company established the Buyout fund,the cumulative excess return of the overall sample was significantly positive.In the short term,the announcement of the establishment of the Buyout fund was released to the market to convey a favorable signal,and there was a positive market effect.Second,the factors affecting the market performance of listed companies' merger and acquisition funds are mainly the size of the Buyout fund,the level of leverage,the growth of the company and the shareholding ratio of the top ten shareholders.