Research On The Impact Of Private Equity Investment On The Post IPO Performance Of Chinese Enterprises

The impact of private equity investment on listed enterprises is still controversial in previous studies.The research results are also different for enterprises in different sectors,different industries and different listing times.Since the introduction of relevant concepts in 1984,private equity investment has a history of more than 30 years in China.During this period,private equity investment showed a "blowout"development,and relevant policies and management systems were constantly improved.Despite the adverse effects of COVID-19 in 2020,China’s private equity investment industry has maintained steady growth.In this context,this paper selects Shanghai and Shenzhen A-share listed enterprises as the research object,and deeply studies the impact of private equity investment on enterprises,the intermediary variables of private equity and the regulatory variables affecting the effect of private equity from the perspective of stock return.By studying the data of more than 2000 invested enterprises,this paper finds that compared with the enterprises without private equity investment,the enterprises with private equity investment have a significant positive correlation between the initial stock return and excess stock return and the dummy variable of private equity entry;There is a significant positive correlation with the shareholding ratio of private equity shareholders,that is,private equity participation and shareholding increase have a positive impact on listed enterprises.In addition,this paper innovatively takes investor attention as an intermediary variable for private placement to affect the stock return of invested listed enterprises,and discusses the changes of underwriter reputation,corporate governance and the effect of private placement at different levels during enterprise IPO.The empirical study found that private equity investment can have a positive impact on the stock return of the invested enterprises after listing through the two intermediary variables of investor attention:Baidu search index and the number of posts in stock bar.At the same time,based on the theoretical and empirical data that private placement alleviates the IPO information asymmetry of invested listed enterprises,affects the corporate governance level of invested enterprises,and investors’ limited attention,it is found that the higher the underwriter’s reputation and corporate governance level,the positive effect of private placement on invested enterprises will be restrained,that is,the positive utility of private placement is limited.This paper enriches the empirical methods of theoretical verification of private equity investment,expands the research scope of private equity affecting enterprises,provides new ideas for private equity investment research,and provides more support for enterprises to explore more development and the development of China’s capital market.