Research On The Impact Of Private Equity On Corporate Financial Performance

Since the Private Equity(PE)entered China in the 1990s,it has seen rapid development in the last decade.In the current context of corporate financing difficulties,companies need to obtain rapid capital expansion,rapid development and enhance their own strengths,The original cost of obtaining investment through private equity is one of the important ways.This article combines the theoretical research of the norm and the actual case analysis to combine the research methods.It summarizes the theoretical background,related hypotheses and general mechanisms affecting private equity's financial performance,and lays a foundation for the effect of private equity on financial performance,combining the relevant definition and overview of private equity and financial performance.Then the case of Goldwind Science&Technology Co Ltd's introduction of private equity was used as a case study to introduce the relevant background and operating conditions of Goldwind Science&Technology Co Ltd,the basic conditions of private equity institutions introduced by Goldwind Science&Technology Co Ltd and the main process of private equity.In addition,from the aspects of private equity to solve corporate capital requirements,optimizing corporate equity structure,resolving agency issues,and providing value-added services for enterprises,the company explores the path of the impact of private equity on corporate financial performance,and The financial performance of Goldwind Science&Technology Co Ltd Private Equity in the previous year was compared with the financial performance of the year in which it was introduced,and assisted in another PE-free background in the same industry.However,Shanghai Electric,which has a similar industry scale,was the target of comparison,from the perspective of solvency,The financial indicators of the four aspects of operational capacity,development capacity and profitability and EVA comprehensive analysis of the impact of private equity on financial performance,the results are summarized and comparative analysis,that the overall introduction of private equityGoldwind Science&Technology Co Ltd on the company's financial Performance has a positive impact,but it also needs to avoid the problems that can arise from the negative impact that private equity can have on corporate performance.Finally,combining the research conclusions,objectively analyzing the problems that arise in the process of private equity,and in response to these problems,put forward the relevant recommendations that enterprises should pay attention to in the process of introducing private equity.