Research On The Differences Of Private Equity Investment On The Performance Of Smes In Zhejiang Province Before And After Listing

Private equity investment is an innovative way of investment and financing,originated in the United States.It has been used maturely in some developed countries and regions.It is the product of the diversification,technicalization and globalization of the world economy.China's private equity investment has experienced over 30 years of development.In recent years,our government has advocated “mass entrepreneurship and innovation”,and has provided preferential policy conditions for entrepreneurs and innovative enterprises.Numerous high-tech SMEs emerge in an endless stream.As one of the best financing methods for small and medium-sized enterprises,private equity investment has gained a good reputation among the public for its professionalism and service,and thus has been able to develop rapidly.At present,the number of institutions and investment amount in the private equity investment industry have accumulated to a certain scale.According to statistics,in 2018,the cumulative number of China's private equity investment institutions and funds has reached nearly 200,000,and the total amount of funds raised to about 8 trillion yuan.Private equity investment not only injects capital into enterprises,but also obtains part of the control rights of enterprises through holding equity,so as to supervise enterprises and assist them to complete major strategic deployment,and play a certain role in promoting the improvement of SMEs' business performance.In-depth discussion of the impact of private equity investment on the business performance of small and medium-sized enterprises has both theoretical and practical significance,which is not only related to the development of small and medium-sized enterprises,but also related to the maintenance of the order of private equity investment industry.Firstly,through studying relevant literature,this paper sorted out domestic and foreign scholars' conclusion of the influence on the business performance of enterprises before and after the listing caused by private equity investment.It is found that domestic and foreign scholars have studied the influence various characteristics of PE has on enterprise performance,but there is a lack of piecewise comparative study on the pre-market and post-market stages of enterprises.Taking this as the entry point,this paper constructs a research framework,and studies the influence of private equity investment on the business performance of the same enterprise before and after its listing,based on the data before and after the listing.This paper summarizes the related concepts of private equity investment and enterprise performance,and interprets related theories of the influence the private equity investment has on the business performance.It is used as a theoretical support to explore the mechanism of private equity investment's influence on both positive and negative aspects of corporate performance and to propose hypotheses.In addition,the paper analyzes the development status of small and medium-sized enterprises and private equity investment in zhejiang province,and the relationship between them,and explains the representativeness of choosing the market in zhejiang province This paper takes 149 enterprises listed on the SME board and the growth enterprise market in Zhejiang province from 2004 to 2014 as the research object,takes whether there is PE support,shareholding ratio,joint investment strategy,exit time and reduction ratio,reputation of PE,whether PE has foreign capital background as influencing factors.Then use Stata software for quantitative analysis.The empirical research results shows that: Before the listing of the enterprises,the operating performance of the enterprises with private equity investment is better than that of the enterprise without private equity investment.The performance of enterprises supported by joint investment is better than that of enterprises supported by single investment.The shareholding ratio and reputation of private equity investment institutions are positively correlated with corporate performance.Foreign background PE plays a greater role in improving enterprise performance.After listing,the performance of enterprises supported by private equity investment is worse than that of enterprises without private equity investment.The operating performance of enterprises with joint investment is better than that of enterprises with single investment.Business performance is negatively correlated with the shareholding ratio,exit time and reduction ratio of PE,and positively correlated with the reputation of PE.Enterprises invested by PE with foreign capital background have better performance.Finally,according to the research conclusions,this paper puts forward some suggestions on the operation and financing behavior of small and medium-sized enterprises,the investment behavior of private equity investment institutions,and the government's legislation and regulation.