| This study used a panel data sample representing of129real estate listedcompanies in Shenzhen GEM during2009-2011to investigate the effectwhich with PE or not has emphasized on firm’s stock performance by usingdescriptive statistical method and building multivariate linear regressionmodel.First, this paper reviews the private equity’s definition, effect, and thedevelopment history and present situation in China. This paper summarizedthe factors which can affect the stock price of listed companies based on therelated research literature at home and abroad. Secondly, this paper carried outa descriptive statistical analysis on how private equity affect the stock price oflisted companies, and built effect relational model by using multivariate linearregression method on based of practice of scholars both at home and abroad tocompare and analysis every explanatory variable.The result which using the Stata software for processing the mixed dataof the samples showed that on the first day of the company IPO,PE/VCsupported companies’ stock price has a better performance than those without PE/VC supported companies. This phenomenon may be caused by thefinancing effects of the private equity. Thus, result in the companies whichhave PE/VC supported had a high stock excess return rate. But in the long run,the data of the companies listed in Shenzhen GEM didn’t have positive effectwhich found in theory. This study found that companies’ stock priceperformance had a significantly positive impact on the shareholding ratio ofPE institution and how deep the PE institution Involved in enterprisemanagement on the first day of IPO, and had a significantly negativeimpact on the shareholding ratio how many years the PE institutionestablished.This paper try to propose the optimization direction of the China’s PEmarket, and make a suggestion about the policy recommendations for thedevelopment of the China’s PE market based on the above empiricalconclusions. |
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