Research On The Impact Of Private Equity Financing On Firm Financial Performance

The practice of economic development in China shows that private enterprises have played an important role and played an active role in social and economic development.However,the difficulty of financing has become a bottleneck for the rapid development of private enterprises.After the birth of private equity fund,it runs through all stages of enterprise development,becomes an important channel to solve the financing difficulties of enterprises,and effectively promotes the growth of China's real economy.With the advancement of the process of world economic integration,private equity financing has become an increasingly important and has been recognized by the domestic financial circle.Since its introduction into China in the 1990 s,it has been developing rapidly and becoming more and more active.Against the background of great difficulty in enterprise financing,it has become an important way for enterprises to obtain investment capital and an important source of driving force for their rapid development.Sina,Netease,Mengniu,Alibaba and other competitive enterprises all rely on it for development and growth.So,vigorous development of private equity capital market,as a bridge between finance and real industry,is an important means to achieve financial breakthrough and promote the development of real industry.The establishment of the science and technology innovation board in 2018 is a major advantage of the capital market,which is conducive to incubating innovative and entrepreneurial enterprises,promoting industrial upgrading and transformation,further opening up direct financing channels and broadening exit channels,bringing substantial benefits to private equity.In this context,it is of great practical significance to study whether private equity financing can enhance the value of enterprises.This study adopts the research method of combining theoretical research with practical cases.Firstly,it summarizes the theoretical research foundation and relevant literature on the impact of private equity on corporate financial performance,and takes the definition and overview of private equity and corporate financial performance as the theoretical basis of this study.Secondly,on the basis of theoretical analysis and research,blue cursor private equity financing event is introduced as a case study to analyze and study,and then the background,operation and development process of blue cursor financing enterprise,and the introduction of Dar Chen venture capital structure and the process of private equity financing are briefly introduced.Thirdly,it explores the impact of private equity on corporate financial performance from three aspects: solving the financing needs of financing enterprises,obtaining high-quality shareholders optimizing the equity structure and providing value-added services.Study the impact of it on enterprise financial performance,Comparing and analyzing the financial indicators data before and after the introduction of blue cursor into it from four financial indicators,and studies the impact of private equity financing on the financial performance of enterprises.The results show that in general,private equity financing has a positive impact on the financial performance of enterprises.Based on the above analysis,combined with the results of this case study,this paper points out that the inspiration given by blue cursor private equity financing case,which is actually the financing risk from enterprises,and puts forward suggestions for the issues that enterprises need to pay attention to in the process of private equity financing.In order to provide reference for many small and medium-sized enterprises in China to introduce private equity funds scientifically and reasonably.