Research On The Impact Of Private Equity On Corporate Performance

The emergence and development of the private equity investment market make up for the gaps in traditional financing channels.Especially for emerging industries,private equity investment not only injects a lot of capital into its development,solves the financing difficulties and disperses some risks,but also improves the company 's Capital structure,optimize governance level,and provide more value-added services for enterprises.Today,private equity investment has become an important driving force for the development of China's small and medium-sized enterprises and emerging industries,and has increasingly deepened its impact on the economic development of the entire country.Under this background,studying whether private equity investment can promote the sustainable development of small and medium-sized enterprises in China,and effectively combining technology and capital has become the focus of research.This article adopts a combination of standardized theoretical research and practical case analysis.The research method first focuses on the development status of private equity investment in China and what it means for the development of SMEs.Summarize the research results of domestic and foreign scholars on the relationship between private equity investment and corporate performance,analyze the related theories and mechanisms of private equity investment affecting corporate performance,and analyze private equity investment from three aspects of financial performance,corporate governance level and market performance How to influence the performance of the company.Taking the Tigermed's cooperation of private equity,namely Qiming Weichuang Venture Capital,as a case study,it introduced Tigermed's background and business operations,the basic situation of the private equity institutions introduced and the main process of investment.Based on the previous theoretical basis,an enterprise performance evaluation and analysis framework was established to analyze the two-stage enterprise performance of PE before Tigermed appeared on the market and the year of listing until PE completely exited,and selected the industry average and the performance of the case company Performance as a comparison.According to the analysis results,in general,the introduction of private equity financing by Tiger Pharmaceuticals has a positive impact on the company's corporate performance,but the specific effect still depends on how PE implements post-investment management.Finally,from this case,the experience is summarized to PE and enterprises give suggestions on how to cooperate.