The Impact Of Private Equity Investment On The Development Of Listed Pharmaceutical Companies In China

Along with the development of bio pharmaceutical industry has been identified as an important strategic emerging industry in China in the"12th Five-Year plan",it has become a hot issue in the development of our country.Therefore it is important to bio pharmaceutical enterprises in China to cultivate their own innovation ability,and get rid of drugs imitating traditional manufacturing way.So the developing 1 bio pharmaceutical enterprisesof high potential cannot do without the support of funds.And banks and other traditional financial institutions can not provide loans to these companies for various reasons.With the development of China's capital market,the domestic private equity investment institutions have emerged like bamboo shoots after a spring rain.And got certain development,these private equity investment institutions can fill the gaps of traditional financial institutions.It also can provide space for the development of bio pharmaceutical companies with high potential for development.Therefore,the study of the impact of private equity investment on the development of Listed Companies in China is based on the above reasons.In this paper,there are two aspects to do on the impact of private equity investment in the development of China's biomedical.In the theoretical study,we will combine private equity investment and the related knowledge of biological pharmaceutical.In the theoretical research,we take the private equity investment,the relationship of the invested enterprise and the private equity investment as the theoretical support to the impact of the investment in the bio pharmaceutical enterprises.In the empirical study,the biomedical companies listed on the market from 2006 to 2014 were selected as the sample.And this paper conducts an empirical study on the short-term performance and long-term performance.In the short-term,there is no gain of private equity backed companies listed on the first day of the premium index and listed on the first day abnormal return to study whether there is difference,on this basis,the specific impact properties analysis of private equity investment to the invested enterprises listed on the first day of the excess returns generated;In the long run,the Fama-French three factor model was used to analyze the long term stock performance differences of listed companies who have been supported by private equity institutions for more than 3 years.The conclusion is that the premium performance of listed companies on the first day of private equity investment and the long-term performance of stocks are better than those without private equity investment.At the same time,lockup period,one year before the listing into there is a significant positive correlation between the shareholding ratio of private equity investment,and the number of its negative correlation exists,then its reputation exists no significant positive correlation relationship.After these conclusions,the possible reasons for this result are analyzed,and the robustness test is made.At the end of this paper,the author gives some suggestions on the development of private equity investment and the development of biopharmaceutical enterprises.