Research On The Impact Of Private Equity Investment On The Value Of Small And Medium-sized Enterprises In China

Private equity investment is a new type of tool produced in the world financial market in the background of the development of the times.It has sprouted in China since the 20 th century.It has a history of more than 30 years.It has experienced USD-led funds as the market-dominated from 1992 to 2004.The start of entry,but the budding period with low investment activity,the start-up period of the steady increase in the activity of RMB funds investment after the launch of the small and medium-sized board and the GEM from 2005 to2014,and the rapid increase in market size since 2015 of industry competition and more regulation The period of continuous upgrade.With the promotion of “double-creation”development and “supply-side reform”,a large number of promising industries have emerged,and entrepreneurial booms such as “Internet Plus”,financial technology,sharing economy,and artificial intelligence have emerged.At the same time,a large number of private investment institutions,state-funded institutions,financial institutions,and strategic investors have joined the equity investment market.Start-up companies and investors are facing this opportunity and challenge,so the equity investment market in China is still in the primary development stage.According to statistics from the Private Equity Database,the amount of investment in China's private equity investment market has continued to increase,from 235.182 billion yuan in 2007 to 1845.237 billion yuan in 2017,an increase of nearly seven times,providing sufficient funding for start-up companies.Entrepreneurial companies seek help from private equity investment institutions,which also provides space for their development.Therefore,it is of great practical significance to research whether the private equity investment can enhance the value of the invested company.The technical path of the paper is as follows:First,this paper introduces the background and significance.According to the section of literature review,we can analyze and conclude that domestic and foreign literature focuse on private equity investment from the perspective of enterprises,and studies private equity through corporate governance,earnings management,and technological innovation.The research on equity investment angles is relatively few and not deep enough.Therefore,the research ideas are determined.From the perspective of the characteristics of private equity investment,the relationship between private equity investment foreign investment background,institutional reputation,shareholding ratio,and the amount of joint investment and corporate value are analyzed,as well as their influence on the enterprise value of the path analysis.The paper outlines the basic conditions of corporate value and private equity investment,including the concept of company value,measurement methods,private equity investment concept,characteristics,the operation process of investment project,and status quo.The development status is mainly analyzed by data from 2007 to 2017.In the past literature basis of private equity investment fundraising amount,fund number,fund type,investment amount,investment case,exit method,industry and geographical distribution.Then it is based on principal-agent,social network,corporate governance and other theories,the mechanism of the impact of private equity investment on company value is analyzed,and six research hypo-theses are proposed.Taking the sample of 117 companies listed on the SME Board from 2014 to 2016 as a sample,a multivariate linear regression model was established and Eviews software was used for regression testing.Through empirical analysis,it was concluded that the value of the company with private equity investment was higher than that without private equity investment.The corporate value of companies with private equity investment is better than that of enterprises without private equity investment;the background of foreign investment in private equity investment is better than that without the background of foreign capital;the better the institutional reputation and the proportion of shares held,the greater of the number of joint ventures,the greater the value-added of corporate companies will be.Finally,it provides reference and suggestions for investment decisions of private equity investment institutions,financing and management of SMEs,and guidance and supervision of government departments.