An Empirical Study Of The Private Equity Investment's Impacts On The Performance Of Small And Medium-sized Innovative Enterprises In China

As the major participant in the innovation of China's market economy,high-tech enterprises play a key role in the government's deep implementation of innovation-driven development strategy.However,the small and medium-sized high-tech enterprises are mainly in the early life cycle,faced with the plight of financing difficulties.The main characteristics of private equity investment is traced for high risk and high return,which is highly fit to the main characteristics of small and medium-sized high-tech enterprises.The private equity investment industry has quickly developed since 2014.The whole industry's investment scale has increased significantly,which has strongly activated the microscopic main body of small and medium-sized high-tech enterprises.This paper mainly adopts the method of empirical research to study the sample of the unlisted small and medium-sized high-tech enterprises held by the China Construction Bank Guangdong Branch in 2013-2020,those also gain private equity investment.Considering the Financing Constraints Theory,Principal-agent Theory,Joint Investment Theory,we study the company's business performance and operational efficiency of the governance effect with PE's shareholding ratio and joint investment situation.It is found that the proportion of PE institutions is U-shape correlated with the business performance and operating efficiency of the enterprises,and the number of PE institutions participating in the PE is also U-shape correlated.In contrast to the previous literature,the data of this paper are mainly derived from the internal business data of China Construction Bank Guangdong Branch,which is non-public data.The domestic literature on PE shareholding ratio and joint investment is relatively few.China's PE development is still immature,the relevant theoretical system is not perfect,PE's involvement in the role of the enterprise is also a great impact on the overall market environment.It has not come to a unified conclusion.This paper makes up the gap of empirical research on Private Equity Investment,due to the lack of data of listed companies.This paper enriches the research theory and literature of corporate governance,the development of small and medium-sized high-tech enterprises.It shows important significance for our country to promote the small and medium-sized high-tech enterprises' and PE institutions' development.Our paper also have a positive role in promoting China's technological innovation,economic restructuring and upgrading and the healthy development of the PE market.