Financial Relevance, Investment Efficiency And Enterprise Value Of-from The Evidence Of Private Enterprises In China

With the rapid development of China's private enterprises,it has become an important supporting force for China's current economic development in the past three decades since the reform and opening up.Especially in the past 10 years,with the development of the Internet and economic,it create an opportunity for private enterprises.Economic development can create business opportunities for private enterprises but private enterprises also faces a lot of problems in the same time.Property rights protection system is not well and the financial system is not perfect,it has brought challenges to the development of China's private enterprises.Private enterprises are also constantly trying to make some changes.They trying to establish a variety of related relationships to solve such question,such as financial relationship and political ties.Financial relations has become an increasingly common phenomenon and it is hot topics in recent years.According to the study of private enterprises and financial institutions also have a complex relationship between them.It will ultimately affect the value of the enterprise.Quantitatively explores the impact of financial relations on the value of private enterprises.On this basis,it also chooses the investment efficiency as the financial association to analyze the impact path of the enterprise value.This paper is based on the study of 2648 private companies in China from 2012 to 2014.To investigates the effect of the establishment of financial association on the value of enterprises in private enterprises and further analyzes the impact of financial investment on enterprise value.The results show that the establishment of financial association will have a positive impact on the enterprise's value.The inefficient investment in the establishment of financial-related private enterprises will decline.Financial association will have a positive effect on the value of enterprises by reducing the inefficient investment of private enterprises.The study of financial correlations is divided into bank and non-bank financial correlations.The study shows that non-bank association is more effective in influencing enterprise value by improving investment efficiency relative to bank.The conclusion of this paper provides a reference for future financial strategic planning of private enterprises.