Research On The Motivation And Impact Of High-technology Enterprise Introducing Private Equity

Science and technology are primary productive forces and decisive factors of comprehensive national strength.However,high R&D investment and risks cause high-technology enterprises to face severe financing constraints and fail to fully release development potential,which greatly hinders China’s technological innovation and national strength.Private equity,an important financing method to break the financing bottleneck of high-technology enterprises and improve technological productivity,has attracted much attention from all walks of life.This paper summarizes relevant literature and theories on high-technology enterprises introducing private equity.Based on CATL’s development status and new energy automobile market,it analyzes the motivations of CATL introducing private equity for many times.Then evaluates the effects from innovation,operating and market performance.The research shows that:(1)private equity enables company to increase R&D investment and attract more technical talents;however,since the enterprise is inclined to strategic innovation in the later period,the quality of patents has declined;(2)it enables company to expand rapidly and improve business performance;but aggressive expansion also leads to higher operating risk;(3)the reputation mechanism and certification effect of private equity institutions has made the company recognized by external investors and achieved good market performance when going public;however the IPO underpricing rate is still high.The contribution of this article is to show CATL’s development path through case study,which enriches the research on high-technology enterprise introducing private equity and provides some references for other enterprises to achieve sustainable development.