Research On The Impact Of Private Equity Fund Investment On The Performance Of GEM-listed SMEs

The role of SMEs in the development of the national economy cannot be ignored.In October 2009,the launch of the GEM provided new financing channels for SMEs,but due to the small scale of SMEs' assets and the imperfect internal management mechanism,the system faced And the characteristics of non-systematic risks make SMEs in a weak position in the capital market.Therefore,how to solve the problems of financing difficulties for SMEs,single financing channels,non-standard business operations and poor anti-risk ability are becoming more and more important.In this context,as a flexible direct financing method,private equity funds explore potential SMEs as investment targets,provide funds for SMEs in the form of equity investment and intervene as SME shareholders in the management of SMEs.Solving the problems in its management and management,this may have a positive or negative uncertainty impact on the performance of SMEs.Therefore,it is worth exploring what kind of performance impact that private equity funds invest in SMEs will bring to SMEs.Based on the above,this paper takes the private equity fund investment as the theoretical basis for the impact mechanism of the GEM-listed SMEs,and analyzes the comprehensive performance of 85 GEM-listed SMEs listed in 2015,and invests through private equity funds.The performance comparison before and after the listing of the company,how the private equity fund through the PE shareholding ratio,PE holding period and PE reputation affect the performance of the company.And by discussing the impact of private equity fund investment on the performance of GEM SMEs,it provides reasonable suggestions for the performance of GEM SMEs and the development of private equity funds in China.Through research,it is found that:(1)After the listing of SMEs in China,the comprehensive performance scores of enterprises in the second year of listing are better than the first year of listing.However,the overall performance of enterprises in the third year of listing is generally declining year by year,but PE participates.The decline in corporate performance is even more pronounced.(2)There is no significant positive correlation between PE shareholding and corporate performance;PE holding period has a significant positive correlation with corporate performance;PE reputation and corporate performance are significantly positively correlated;appropriate company size is conducive to improvement Corporate performance;proper equity concentration is conducive to the rise of corporate performance.At the same time,this paper provides reasonable suggestions for the improvement of performance of SMEs and the development of private equity funds in China for the theoretical and empirical analysis.