The Empirical Study On The Relationship Of Private Equity, Earnings Management And Firm Value

The establishment of multi-level capital market in China, especially the small and medium-sized plate and the growth enterprise’s appearance, is not only alleviate the financing difficulties of small and medium-sized enterprises, also for private equity provide a more complete exit channel. Relative to main board market, the small and medium-sized plate listed conditions relate low, but still carry out its standard. For listed companies in order to realize the listed target, they through the means of earnings management to modify the financial statements’ phenomenon is very common. It is not only harm the interests of the company’s stakeholders, it will affect the enterprise short-term performance and long-term growth.This paper based on the private equity, earnings management and firm value as objects, studies their influence mechanism, revealed economic law of by investment. Using private equity to constraint earnings management and improve firm value, hoping to provide theoretical basis and practical reference for the healthy growth of private equity and enterprises.This paper makes the small and medium-sized boards of listed companies as the samples of study. Firstly, the paper starts with the background and significance of research, reviewing the foreign and domestic research literature, described the concept of private equity, earnings management and firm value, then based on the influence factors of the firm value analysis the relations; Secondly, the paper makes an empirical analysis by using of OLS regression analysis. The results show that private equity, its different characteristics and firm value was positively correlated, the participation of private equity can effectively improve firm value;private equity and its different characteristics were negative correlated with earnings management; In the process of private equity promote firm value, earnings management behavior play a partial mediation effect. Finally, in combination with small and medium-sized board market and private equity’s development, this paper put forward the enlightenment and the suggestion such as enterprises should scientific introduce private investment, improving internal system, constraints earnings management; Private equity improve its quality, small and medium-sized board market establishing and perfecting the external macro environment.