The Impact Of Private Equity Fund Participation On Enterprise Performance

From the reform and opening up to the present,China's economic strength has been greatly improved,and China's economic development mode has also changed from a resource-intensive high-speed development to a technology-intensive medium-high-speed development.Because of its flexible operation,private economy can provide new vitality for economic development.Premier Li Keqiang put forward the idea of "mass entrepreneurship and innovation" at the Summer Davos Forum in 2014.How to promote the smooth and efficient development of China's start-up enterprises has become a very concerned issue at this stage.As an institution engaged in equity investment of non-listed companies,private equity funds have been favored by enterprises at different stages of development in developed countries because of their unique investment and management methods,and have become the third largest financing tool after bank loans and initial public offerings.Since the 1940 s,the European and American private equity fund industry has gone through 80 years of development,while China's private equity industry started relatively late.After 30 years of rapid development since the 1980 s,the size of the fund has reached 7 trillion yuan.Because of the short development time,there is still a big gap between China and the mature private equity market in Europe and America.Foreign scholars have made sufficient research on the impact of private equity fund participation on corporate performance.The main theories that have been formed are supervision effect,certification effect,adverse selection effect and grandstanding effect.Domestic scholars have studied this field relatively late,and the relevant conclusions are quite different.Therefore,this paper focuses on the impact of private equity investment on corporate performance,and chooses the enterprises listed in China in 2015 as the sample to study.In order to ensure the timeliness and credibility of the research,this paper collects 15-17 years' data from IPO Companies in China in 2015,and uses normative research and empirical research methods to explore the impact of private equity fund participation on business performance.At the same time,different hypotheses are studied in different sections.The results show that,in terms of the impact on corporate performance,The effect of monitoring/certification of private equity investment in China is not obvious,and it does not have the same effect as developed countries in improving corporate performance.On the contrary,the performance of enterprises with private equity funds is inferior to that of enterprises without private equity funds,The adverse selection effect of the main board market is the most obvious.Further research found that private equity joint venture investment can not improve corporate performance,and the promotion of private equity ownership in the GEM has a certain inhibitory effect on corporate performance.At the end of this paper,we construct an intermediary effect model and find that private equity funds in China can not affect corporate performance by affecting innovation investment.The research shows that,because of the late start of private equity investment in China,the adverse selection effect of private equity fund participation on corporate performance is obvious,while the monitoring effect is not obvious.