An Empirical Study On The Impact Of Private Equity Investment On Corporate Performance

With the support of the policy of "mass entrepreneurship and innovation ",innovation and entrepreneurship will inevitably become a new driving force to promote China's economic development.At present,the lack of financing channels for entrepreneurship is the primary problem facing the development of public innovation and entrepreneurship system,and the development and growth of private equity investment has effectively alleviated this problem.As a new way of capital operation,private equity investment not only solves the problem of capital source for mass entrepreneurs,but also improves the resource allocation efficiency of capital market,and becomes an important force to promote the development of capital market.With the continuous improvement of the status of private equity investment in the capital market,domestic scholars have carried out a lot of research on it and achieved fruitful results.However,there are significant differences in the conclusion of the study on the role of private equity investment in enterprises.Therefore,it is necessary to further confirm the specific role of private equity investment.This article aims to explore the impact of private equity investment on the performance of enterprises,first based on the theory of venture capital,and combined with relevant documents at home and abroad to conduct a qualitative analysis of the role of private equity.Then through the collection of small and medium board enterprise data for comparative analysis and regression analysis,the empirical test of private equity investment on the performance of the concrete effect.In order to explore the effect of private equity on corporate performance more comprehensively,this paper also tracks the performance of the company after listing and studies whether the impact of private equity on the company can be sustained.From the perspective of private equity ratio and the number of investment institutions,this paper studies the impact of private equity investment with different characteristics on corporate performance.Finally,private equity joint investment is classified to study the impact of different types of joint investment on corporate performance.The empirical results show that:(1)The performance of private equity-supported companies should be significantly superior to that of private equity-supported companies,and the initial performance of private equity when entering the company has no significant impact on the final performance of the company.It shows that private equity investment can not only explore the potential of enterprises,but also promote the development of enterprises.(2)The performance of private-equity investment-supported companies within two years of listing is not significantly different from that of companies without private equity support.The impact of private equity investment on corporate performance can not continue until after listing,indicating that private equity investment is still limited to short-term benefits.Did not look at the long-term development of the company.(3)The performance of enterprises supported by single investment is significantly better than that of enterprises supported by joint investment,indicating that private equity joint investment has not brought out its broader advantages of joint resources.(4)The performance of enterprises supported by joint investment with consistent interests is significantly better than that of enterprises supported by joint investment with inconsistent interests,indicating that efficient joint investment can better promote the improvement of corporate performance.The research of this paper is valuable for understanding the theory of equity investment deeply,and has practical significance for promoting the healthy development of private equity industry and promoting the efficient operation of private equity investment.