Research On The Influence Of Private Equity On Innovation Ability Of GEM Listed Companies

Along with Chinese economy reach the stage of high quality development,innovation as an important driving force of economic development and social reform,plays an important role in forming a modern economic system.Technological innovation requires a large amount of capital investment However,under the current financial environment,it is difficult for enterprises to be listed to obtain funds from banks for innovative R&D activities.As a new financing mode,private equity investment can make up for the deficiency of bank channels in financing and provide sufficient funds and other services conducive to innovation to a certain extent.In recent years,the private equity industry is growing at an unprecedented speed in China,its financing capacity has been greatly improved,and the investment is more inclined to enterprises with high risk and high growth,which adds vitality to social innovation.Therefore,it is very necessary to explore the influence of private equity investment on commercial innovation.This paper studies the impact of private equity investment on enterprise innovation,which has guiding significance for the decision-making and management of different market players,and is helpful for financing enterprises,private equity investment institutions and the government to adopt corresponding development strategies.After sorting the literatures,this paper analyzes the mechanism and impact of private equity investment on the innovation ability of GEM listed companies from three aspects,which are providing financial support for enterprise innovation,improving enterprise settlement structure,and providing value-added services for enterprises.Secondly,selecting two categories from the data of A-share GEM listed companies from2016 to 2021 are divided into two categories: invested and not invested by private equity.Furthermore,this paper conducting a regression analysis,followed by robustness test and heterogeneity analysis.The results show that private equity investment has a positive promoting effect on the innovation ability of enterprises,and the shareholding ratio of private equity investment has a positive changing relationship with the innovation ability of enterprises.Compared with PE investment alone,the innovation ability of enterprises invested by PE joint investment is more creative.Finally,the conclusions of empirical analysis are explained in detail,and the countermeasures and suggestions are put forward as well as the follow-up research direction.