Study On The Effects Of Private Equity Fund Invest Culture Industry

With the swift sustainable development of China’s economy and theimprovement of the domestic investment environment, China nowadayshas become an important target market of global private equity fundinvestment. In recent years, domestic private equity fund investmentinstitutions have developed rapidly because the world famous globalprivate equity fund investment institutions promptly leap into the Chinesemarket, thus more and more cases of private equity investment come intopeople’s horizons. As the sunrise industry of the21th century, cultureindustry has a very good development prospect. Our government hasintroduced more than100guiding ideologies, regulations andmanagement measures related to culture industry to promote thedevelopment of culture industry. However, China’s culture industry has somany disadvantages, such as narrow financing channel, low bank creditinvestment, blocked direct financing channels and less private capitalparticipation, which severely hinder the development of China’s cultureindustry. As a kind of private capital, private equity fund needs lessdocuments, formalities and limitations. It differs from public offeringfunds which should routinely publish investment portfolio. Therefore, itwill definitely open up new development ways for the development ofChina’s culture industry.The text is based on domestic and overseas research result, study the correlation effect of private equity fund investment in our country’scultural industry. First, introduce the background, and meaning of thetext’s topic, then summarize the major research results of the domesticand overseas scholar in private equity fund and cultural industry.Secondly, on the base of the introduction of private equity fund andcultural industry’s theory, analyze the current situation of the privateequity fund investment in cultural industry. Once more, use the methodsof theoretical and empirical analysis to research the difference betweenthe corporations which have the support of private equity fund or not;including their aftermarket performance and business performance. Andinfer that the private equity fund has a certain influence on certificationand promotion of corporate value with their investment. At last, get therelevant conclusion, and put forward a series of important policysuggestions about the possible risk from the process of investment,respectively two points: the governments and fund managers.