Research On The Stock Performance Of The Establishment Of Buyout Funds By The Listed Companies And PE Institutions

Since 2014,the rise of corporate structural reform led to the rapid development of buyout funds in China.The buyout funds set up by listed companies in cooperation with professional private equity investment institutions has not only become a new development and a new breakthrough in mergers and acquisitions in China's capital market."PE" type buyout funds of listed company have become the mainstream development mode of local buyout funds.While overseas research on buyout funds is relatively comprehensive,domestic research mainly focuses on the qualitative research,such as the development mode and current situation of buyout funds.As the improvement of the disclosure system,it can provides more resources for further quantitative analysis.First,this article first uses theoretical research methods to analyze the impact of buyout funds on the value of equity of listed companies from the perspective of cooperation models,profit mechanisms and risks,management and exit mechanisms of buyout funds,and examine which factors drive the stock price effect of listed companies.Second,using the event research method,the paper chooses the announcement of the establishment of PE type buyout funds from April 15,2014 to April 19,2019 as a sample.The article study the stock price appreciation effect to the listed company brought by buyout funds.The empirical results show that the stock price effect during the window period is significantly positive.The main conclusions drawn from the single factor analysis are as follows:(1)The higher leverage ratio of listed companies,the greater effect of share price increase contributed by the buyout fund project.(2)The higher proportion of capital contributed by listed companies,the more obvious the positive effect of share price.(3)The larger buyout funds scale,the more significant value creation effect of listed companies.(4)Buyout funds which investing in strategic emerging industries can bring more positive signals to the capital market.Then,this article establishes a multiple regression model to verify the significance of these four influencing factors on the leverage of listed companies,the size of buyout funds,the proportion of capital invested by listed companies,and investment industry of buyout funds.And examine which factors have a greater effect on the stock price effect..Finally,using the Buy-Hold model(BHAR)to compare the short-term stock price effect with long-term stock price effect.The study found that long-term incomplete disclosure of M & A funds,insufficient stamina of listed companies,and the emergence of "zombie funds" have led to a decline in investment enthusiasm.It is concluded that the long-term stock price effect in the post-investment window period is significantly negative..Based on the above conclusions,this article gives suggestions from government supervision,the listed companies,and investors to avoid "zombie funds" destabilizing the capital market.