Research On The Influence Of Private Equity Investment On GEM Companies In China

Private equity investment first originated in the United States.With the continuous development of China’s capital market,private equity investment has also developed rapidly in China as a mode of financial innovation,and become one of the important ways for the enterprises to solve financing problems.In 2009,the GEM was established.The establishment of GEM enabled those enterprises that did not have the qualification of listing on the main board to obtain opportunity of listing financing.Especially for those enterprises with small scale,short establishment time and limited profitability,but strong innovation ability and great growth potential,GEM is an ideal choice for them.Most GEM listed companies have the background of private equity investment,so it is of great theoretical and practical significance to study the influence of private equity investment on GEM listed companies.Through literature research at home and abroad,it is found that in terms of investment scope,private equity institutions tend to invest in high-tech enterprises with high growth.In terms of the impact of private equity investment on enterprises,it can be roughly divided into positive impact,negative impact and no impact.Through the analysis of the status of private equity investment,it is found that the scale and cases of private equity investment are on the rise,and private equity investment can also enhance the value of invested enterprises,improve the IPO underpricing situation,and deliver high-quality enterprises for GEM.But there are also some problems such as imperfect laws and regulations,irregular operation of private equity institutions,and lack of highquality private equity investment talents.Through the factor analysis method,it is found that enterprises with private equity investment background are better than those without that background in the comprehensive competitiveness.In view of the current situation and existing problems of private equity market development,countermeasures to improve private equity investment to support GEM development are proposed from three aspects: private equity institutions,enterprises that introduce private equity investment and government departments.Figure5;Table6;Reference53...