Research On The Impact Of Private Equity Investment On The Business Performance Of Startups

Private Equity(PE)originated in the United States in the 1940 s.As a financial innovation product,as it began to mature,it began to shine on the financial market.For start-ups,PE can not only ease financing pressures for companies to broaden financing channels,but also improve corporate organizational structure,improve corporate operational efficiency,promote value creation for enterprises,improve incentives for corporate management,and provide enterprises with multiple external resources.Support,transmit good signals to the market and many other functions.The multi-level and multi-channel support of private equity investment has gradually affected the company’s operating performance.In 2014,the China Securities Investment Fund Industry Association issued the “Registration of Private Equity Fund Managers and Funds Filing Methods”,which started the filing system of private equity funds and conferred legal status on private equity.The rapid development of the private equity industry in China has matured since then.The relationship between corporate performance and private equity investment has become the focus of research,which has an important role in promoting and regulating private equity investment and corporate development.This article takes the companies listed on the GEM from 2014 to 2017 as the research object,empirically examines the impact of private equity investment on the company’s operating performance,and measures the company’s operating performance from four aspects: profitability,debt repayment ability,business ability,and growth ability.The explanatory variables are the presence or absence of PE,the number of PE joint investment,the proportion of PE shares,and the number of years of PE investment.The control variables include the size of the company,asset-liability ratio,shareholding ratio of the top ten largest shareholders,corporate background,and macroeconomic factors..The results of the study show that companies with PE participation perform better;the higher the shareholding ratio of PE,the better the company’s operating performance;the investment period of PE has a negative impact on the company’s operating performance;the number of joint investment of PE The impact on the business performance of the company is not obvious.Finally,the research results from the perspective of private equity investment funds and entrepreneurial companies give different suggestions.