Research On Performance Evaluation Of High-tech Small And Medium Enterprises Financing From Private Equit

High-tech SME is an important carrier of training and developing the new strategicemerging industry as the main force of technological innovation, which has a greatsignificance for increasing employment, transformation of economic growth and adjusting theindustrial structure. It is difficult to finance from traditional funds because of the size, highinput and high-risk operating characteristics of High-tech SMEs. Shortage of funds restrictsthe development and growth of High-tech SMEs. Private equity funds not only can solve thebottleneck of High-tech SMEs financing as a mechanism for direct investment, but also canimprove the business performance through participation in High-tech SMEs businessmanagement.This paper analyzes the specific problems of High-tech SMEs development and privateequity market based on theoretical study. And then describes the promotion of PE in financingchannels, corporate governance and IPO. There are many High-tech SMEs listing successfullywith the help of private equity capital at present. The focus of this study is to test the results ofthese enterprises financing.This paper chooses 86 High-tech SMEs which are listed more than 4 years successfully inShenzhen small and medium enterprises Board. Then uses multiple regression modelROE= C+β1PER+β2SIZE+β3LEV+β4EPSto verify the effect of private equity stake(PER ), the total size enterprises (SIZE), asset-liability ratio (LEV), earnings per share (EPS)to the net assets of enterprise (ROE). ROE is a comprehensive evaluation of enterprisebusiness performance indicators. This paper uses Eviews3.0 for the sample descriptivestatistics and regression analysis, uses the least squares (OLS) for estimating the parameters.The results of the overall sample show the relationship between the proportion of privateequity ownership and corporate business performance is positively correlated, that is, privatebusiness can enhance the performance of High-tech SMEs and the greater the proportion ofprivate ownership, the better business performance. The results also show that the relationshipbetween earnings per share, asset-liability ratio and business performance is positivelycorrelated. But the relationship between the total size of enterprise and business performanceis a negative correlation.Finally, the paper proposes the strategies and recommendations of High-tech SMEsfinancing from private equity market from the two levels of government and enterprisescombined with empirical research results. The Purpose of this paper is to promote thedevelopment of High-tech SMEs, then stimulate pattern of economic development.