An Empirical Study About Private Equity Investment Influence On The Corporate Financial Performance

In 2016,the baptism of " the strictest private placement supervision in history" did not stop the growing pace of private placement.According to the data of the Securities Investment Fund Industry Association,by the end of 2018,there were 24,448 registered managers of private equity funds with a total fund management size of 12.78 trillion yuan.According to the securities investment fund industry association.China's private equity and venture capital funds have become an important force in the innovation capital form,to promote the development of small,micro and medium enterprises play an more and more important role,on the one hand,can effectively alleviate the financing difficulties,encourage the idea of enterprise management to focus on value creation,on the one hand,effectively improve enterprise corporate governance,promote technological innovation,finally realizes the enterprise value of ascension.Compared with the mature private equity market in the west,there is still a considerable gap in the private equity market in China,especially the role and quality of post-investment management have not been paid attention to when private equity pursues high-quality investment projects.With the development of private equity in China,how to promote private equity to pay attention to and actively participate in corporate governance has become an important breakthrough to optimize the allocation of China's capital market and improve the operating efficiency of enterprises.Firstly,this paper sorts out and summarizes the relevant domestic and foreign literatures,and forms the research thinking of this paper as the analysis basis of theoretical research.It starts from the three theories of principal-agent,reputation mechanism and supervision and incentive mechanism to analyze the relevant role of private equity investment on financial performance..empirical analysis is carried out on the sample of a-share IPO companies in 2014-2016 to analyze the impact of private equity investment and its characteristics on corporate financial performance.Finally,introducing mediating variables to verify the mediating effect on corporate financial performance from multiple aspects such as ownership structure and management incentives,and testing the validity of the research hypothesis through descriptive statistics and multiple regression analysis.Existing research results show that private equity investment can significantly improve the level of corporate financial performance,while PE composition,reputation and other key characteristics have an important impact on the financial performance of the invested enterprises;Private equity can improve its financial performance by influencing the equity structure of the invested enterprise,the top three executive compensation and other key intermediary variables.Based on the theoretical and empirical analysis,this paper puts forward management suggestions from the perspective of regulatory authorities and private equity institutions.