The Effect Of Private Equity Investment On The Listed Company's Performance

Since China began to set up the 2004 small board and the 2009 GEM,private equity investment(hereinafter referred to as PE)has a greater rate of return.With the opening of Shanghai and Hong Kong,a new wave of private equity institutions involved in the Hong Kong stocks listed companies and sought after by A-share investors.Coupled with the improvement of China's real interest rates,corporate financing costs are getting higher and higher,in this context compared to the bank loan financing business managers are more favored by funds for private equity institutions.Then,domestic and foreign scholars began to pay attention to whether private equity investment really affected the performance of the invested company.PE institutions in addition to the enterprises to provide financial support,their professional industry knowledge and rich experience on the invested enterprises have played a positive positive impact.This issue is controversial in academia.Previously,the results of the private equity investment fund on the company's performance after the listing of different conclusions,and on the PE characteristics of the performance of listed companies less research.In this paper,all the IPO companies in 2010-2012 as a whole sample,not only to study the IPO company in the PE investment on the performance of the company after the listing of the impact,but also further from the PE company before the IPO duration,PE Shareholding ratio and the number of PE involved in these angles to study the characteristics of private equity investment when the performance of enterprises after the listing of the performance changes.The main contents of this paper are as follows:Firstly,the background and significance of this paper,the research contents and methods,as well as the possible innovations and deficiencies are expounded in detail.And defines the relevant concepts and systematically reviews and summarizes the relevant literature on the impact of private equity investment on the performance of listed companies.And then make a detailed explanation of the relevant theory and on this basis.The paper proposes the hypothesis and research design,which includes the establishment of the model,the selection of the sample,the selection of the variables,the empirical test of the team data,and the analysis of the empirical research and the results.Finally,on the basis of theoretical analysis and empirical analysis,this paper puts forward some countermeasures from the aspects of PE selection,government policy improvement and PE self optimization.Based on the actual situation of our country,this paper studies the influence of PE intervention on the performance of listed companies through theoretical analysis and empirical analysis.Through the theoretical analysis,it is concluded that the participation of private equity investment has a positive effect on the improvement of the company's management ability.First of all,PE intervention can solve the company's business process arising from the principal-agent problem,broaden the company's financing channels,not only for enterprises to provide operating funds,but also to provide investment projects need management,finance,strategic planning and other services;Finally,PE can assist the target enterprises to establish reasonable restraint mechanism and incentive mechanism to promote the corporate governance of the situation.The company can improve the ownership structure of the company and improve the core competitiveness of the enterprise,which solves the problems in the process of enterprise development.Improve and enhance the operational capacity of the board,thereby enhancing the company's operating capacity and performance level.In addition,the empirical results show that compared with no private equity investment,private equity investment performance on the performance of enterprises will be better after the listing.PE,the greater the proportion of PE holdings,PE to enter the enterprise to the enterprise listing of the longer duration,the more involved in the number of listed companies PE,PE on the performance of the company after the performance of the more active promotion of the role.Compared to non-foreign background PE,foreign PE background after the performance of the company's performance better.