The Effects Of Private Equity On Corporate Governance Of IPO Firms

This paper discusses the impact of private equity investment of IPO corporate governance structure. Basing on2009-2011GEM data, we use multiple stepwise regression analysis to investigate the characteristics of corporate governance,"Earnings management","Board structures"," Excess control ". As expected, the empirical results show that the private equity investment of IPO corporate governance.From empirical research, we can get the following conclusions.PE support GEM IPO earnings management, the PE can play a supervisor)’role, and have a positive impact on improving the corporate governance structure. Secondly, the study found that, the PE investment helps to improve the independence of the Board. Finally, the PE investment in excess control of the controlling shareholder.In summary, this paper from both theoretical and empirical analysis of the impact of private equity investment of the corporate governance structure of China’s IPO enterprises, the results show that private equity has become an important factor affecting the IPO corporate governance structure of the Company. The role of the corporate governance structure for understanding the private equity investment regulate the private equity industry, play the positive role of the private equity investment has a strong theoretical and practical significance. This study found that follow-up study for the active supervision of the relevant private equity has a certain significance.