Research On The Impact Of Private Equity Financing On The Value Of Innovative SMEs

Innovative small and medium-sized enterprises are the cells of the economic system and an important driving force for social employment and economic growth.At present,our country is in an active period of entrepreneurship.With the increasing number of domestic entrepreneurial activities and the ever increasing share of entrepreneurial activities in the national economy,the growth of innovative small and mediumized enterprises is receiving more and more attention.Private equity financing is one of the most important financing ways for innovative SMEs,and the growth of innovative SMEs is a necessary condition for the sustainable development of private equity investment companies.The growth of innovative SMEs is not only related to the survival and development of start-up enterprises,but also to the existence and development of private equity investment companies.It is the prerequisite and guarantee for private equity investment enterprises to realize the added value of their investment.Therefore,how to promote the standardization and rapid growth of startups is a common concern for private equity firms and innovative SMEs.In order to study the impact of private equity on the development of SMEs in our country,this paper combines private equity financing with enterprise value to test whether private equity financing mode can promote the improvement of enterprise value.Based on the sample of companies newly listed on GEM in 2015-16,this paper divide them into two categories according to whether the sample enterprises have private equity financing or not,and judge whether the private equity financing model improves the governance level and value enhancement of innovative SMEs.Through the verification,this paper argues that the management level and corporate value of the enterprises with private equity funds are higher than that of the private equity funds.The private equity financing model can improve the governance level and corporate value of the listed companies in the GEM of China.After getting equity financing funds,innovative small and medium-sized enterprise governance level is positively related to corporate value.The more financing,the more obvious the role of enterprises to enhance the value.Empirical analysis also tests the main point of this paper that private equity financing model is conducive to raising the governance level and corporate value of listed companies in China's GEM.Therefore,it is feasible to further expand the private equity financing model in China's development space,which is conducive to fully mobilizing the development vitality of Chinese enterprises.At the same time,our country should also actively build a multi-level capital market,broaden the exit path of private equity funds and establish a legal system that is compatible with the private equity funds so as to promote the development of private equity fund financing mode as well as bring to our country more and better start-ups.