Research On The Impact Of Private Equity Financing Of Education Enterprises On Financial Performance

In recent years,Private Equity(PE)has emerged quietly and developed rapidly in China's capital market.It values the development potential of enterprises,and is brave enough to provide financial support and decision-making guidance for enterprises with high risks and profits.It has become the financing channel that educational enterprises scramble to choose.However,it is worth noting that not all private equity financing can promote the development of enterprises.Due to the imperfect development of China's private equity market,enterprises still have potential risks such as equity dilution,blind expansion and short-term behavior after private equity financing.Listed education enterprises on the new three board are emerging,growing and potential.This paper believes that private equity financing has a more significant and far-reaching impact on the financial performance of such enterprises.Firstly,this paper makes a theoretical analysis on the impact of private equity financing on corporate financial performance.Based on principal-agent theory,certification and supervision hypothesis and name-by-name effect theory,it makes a theoretical analysis on the improvement of corporate financial performance and the risk brought to corporate performance by private equity financing.On the one hand,the introduction of private placement can obtain stable capital,improve the ownership structure of enterprises,obtain rich value-added services,improve the visibility of enterprises and other positive effects on the financial performance of enterprises.On the other hand,the introduction of private placement may lead to the occurrence of risks such as dilution of corporate equity,neglect of long-term development and premature listing,which will have a negative impact on corporate performance.Therefore,this paper holds that the impact of private equity financing on enterprise performance is two-sided,and it should be analyzed in combination with the specific conditions of the enterprise,the purpose of private equity institutions,and the intensity of industry supervision.Then from 2014 to 2018,the new three board listed the education enterprise of private equity financing and financial performance of empirical research,2016,2017,2018,threeyears of financial indicators data by descriptive statistics analysis,nonparametric test,correlation analysis and regression analysis method,verified the private equity financing for a new three board sample education enterprise's profit ability and development ability improved,and a significant difference.Conclusion: private equity financing can significantly affect the profitability and development ability of neeq education enterprises.Finally,this paper puts forward research Suggestions from the two aspects of education enterprises themselves and private equity institutions,and puts forward reasonable Suggestions on how to attract private equity financing,how to improve financial performance after private equity financing,and how to control related risks.It is expected to provide reference for operators of educational enterprises to make better use of private equity financing and promote the transformation and upgrading of educational enterprises.