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

Small and medium-sized enterprises(SMEs)are the most active types of enterprises in China's market system.They have always been dominated by small and medium-sized enterprises,and SMEs account for half of the total economic output.The 19th National Congress of the Communist Party of China emphasized the importance of innovation for the country's comprehensive national strength and economic development.Innovation is the key to a company's long-term development and the top priority of its macro-strategic implementation.The first problem that enterprises need to solve in order to innovate is capital.The "financing difficulties" of small and medium-sized enterprises is a relatively common problem in China.It is related to the current level of financial development in our country.As we have no way to introduce diversified financing channels and financing types.In countries with developed European and American capital markets,private equity is an important source of funding for emerging companies,unlisted SMEs,companies in financial difficulties,and listed companies seeking M&A funding.Wu Xiaoling,deputy governor of the People's Bank of China,also pointed out that China should vigorously develop private equity investment funds and raise funds through private equity investment funds,which has become an irreplaceable financing method for the growth of small and medium-sized enterprises.This paper firstly reviews the concept,operation mode,risk supervision and its positive impact on technology-based SMEs in private equity investment,introduces the development status of private equity investment in the United States and India,and focuses on the development of private equity in China.The characteristics,and from the three aspects of improving the financing structure,improving the governance level,and improving the core competitiveness,explain the impact of private equity investment on technology-based SMEs,and lay a theoretical foundation for the following.Secondly,the earnings per share and Tobin Q value are selected as the explanatory variables.Private equity investment is used as the explanatory variable.The concentration of ownership,company size,asset-liability ratio and operating income growth rate are used as control variables.Empirical analysis is based on theory and evidence.The analysis draws conclusions.The conclusions show that the acceptance of private equity investment by technology-based SMEs can not only improve business performance,but also increase their own value.Finally,relevant suggestions are put forward based on theoretical,practical and empirical conditions.