Research On How Private Equity Investment Affects Financial Performance Of High-tech Enterprises

The establishment of ChiNext in October,2009 not only set off a wave of private equity investment in China but also aroused wide attention among domestic scholars as well as some research facilities.One of the main characteristics of private equity investment is that it focuses on high return on investment enterprises.High-tech enterprises,due to the high input,high growth,high yield and high risk characteristics,met the standard of what needed by private equity investment.Therefore,high-tech enterprises became the focus of the research.The relationship between the private equity investment and enterprises performance is still under a heated discussion based on mass datum analysis.Some scholars,from the perspective of corporate governance and based on the agency theory,found that input of the private equity investment could promote the role of corporate performance.Yet,some scholars,from the perspective of empirical analysis found that the private equity investment made no apparent influence on corporate performance.This paper briefly described the status of high-tech enterprises and the development of private equity investment in China.Then it reviewed the research results both from domestic and abroad.And it made a brief statement on what theory used in this paper.Then,it made a statistical description and analysis on the datum acquired from the listed enterprises in ChiNext from 2012 to 2014.At last,the paper drew a conclusion about the relationship between private equity investment and corporate performance in the fields of the enterprises' early growth stage,accelerated growth stage,stable growth stage and maturity stage.Accompanied with case studies to expand the verification,the paper presented the criteria for the classification of life cycle of high-tech enterprises.And by analyzing enterprises' financial performance indicators,it separated the studies into several phases.Finally,at the last of the paper,it made a brief evaluation on the conclusion and brought an outlook to the future studies.The final conclusion of this paper was not only to verify private equity invested in different stages of the developing performance of enterprises but also provided a theoretical suggestion to make a further study.It would also spark corporate governance innovation in China and deepen the reform of financing in the future.