Research On The Impact Of PE On The Profitability And Development Of GEM Companies

Private equity(PE)refers to the equity investment in unlisted companies through private equity investment form,unlike other forms of investment,the investment in this way usually comes with a future exit clause.After the reform and opening up,set off a wave of entrepreneurship in the country.But due to historical reasons,China in the backward productivity at that time,the financial market operation was stagnant,all kinds of enterprises are facing a huge funding gap.Therefore,our country in order to solve the funding needs of enterprises to introduce private equity investment from abroad.In the early years of the introduction of private equity investment,not according to our national conditions,frequent problems,development lags behind,but with several stop.The rapid development of China's capital market,the legal supervision of the quantity and quality of continuing to strengthen and improve the investment targets,the development of private equity investment to create a good ring Exit,from the development situation in recent years,the development of private equity investment has been the emergence of new situation.Not only the status of the industry by the regulatory level affirmation,industry for promoting the innovation and development of small and medium-sized enterprises,industrial integration,active investment market,to build a multi-level capital market structure is also affected by the significance of the central level policy support.At the same time,the government at all levels have set up a private equity investment fund,into the private sector,to support the rapid development of the real economy.The market investment is no longer a single foreign private institutions and local private institutions,the market structure is more reasonable,the operation of the market is more standardized.The scholars of our country from the private equity investment has been carried out the corresponding research,but has not come to consistent conclusions.Therefore,this paper takes 2009~2015 years listed enterprise board as the sample of empirical research of private investment and characteristics of the corporate profitability and development capacity,make a supplement to the previous studies,and to give there has been debate and reasonable explanation.The results showed that private equity investment has a negative impact on corporate profitability and development capacity,but decrease the negativeinfluence to the degree with previous conclusions.In addition,from private equity investment characteristics affect enterprise when carries on the analysis,the following conclusions are drawn a private sector participation in profit and development ability and the enterprise number is not a linear relationship exists only when the number is greater than 3 participating institutions will promote the enterprise to produce for By two,profitability and development capacity of enterprise ownership and private institutions as a nonlinear relationship between the simple.Three,there is a positive correlation between the profitability and development capacity of private institutions and enterprises.In four years,to participate in government background of private sector enterprises,will be the investment profit and development ability of enterprises have a negative impact.Five,the number of participants and the invested enterprise profitability and development capacity is U relationship between government background of private equity investment institutions,private sector participation in government background when the number is more than 2home,will have a positive effect on the enterprise.Finally,according to the current development status of China's private equity market and the existing problems,combined with the empirical research results,respectively from three angles of government,private equity investment institutions and enterprises put forward the relevant policy recommendations.Pointed out that the government should focus on the legislation and financial market system construction.Private institutions should accelerate to attract and cultivate excellent talents,reducing agency costs,to make some contribution to the development of the enterprise.The enterprise really should be based on their actual development,the introduction of private institutions,at stake,in terms of the number of these to select the optimal combination.To further improve the construction of China's financial market system,the development of private equity investment market and private equity investment of enterprises play a role has certain reference and guiding significance.