Research On The Impact Of Private Equity Investment On The Performance Of Innovative Enterprises

With the further improvement of China's capital market,China's private equity investment market has begun to take shape.Both the number of transactions and the amount of transactions show a good trend of increasing year by year.Domestic private equity investment funds have become strong competitors in the market.In sharp contrast,the development of innovative enterprises in China is different from that of traditional large-scale enterprises.Most innovative enterprises are small and medium-sized enterprises focusing on R & D,which need a lot of financial support in the process of enterprise development.The enterprise characteristics of innovative enterprises focusing on intangible assets lead to the difficulty of financing through traditional channels compared with large-scale traditional enterprises.The perfect fit between the private equity investment market and the industrial characteristics of innovative enterprises has brought new development to the financing of innovative enterprises.This paper first introduces the specific characteristics and management process of private equity investment through the combination of theory and cases.In addition,it briefly introduces the performance evaluation model of innovative enterprises,and introduces the relevant theories of the impact of private equity investment market on enterprise performance.Secondly,it establishes a theoretical framework for the case analysis of this paper,briefly describes the development status of China's private equity investment market,puts forward that the influencing factors of enterprise performance mainly include enterprise capital adequacy,management level,human resources,external resources and so on,and points out what influencing factors affect the performance level of innovative enterprises through private equity investment,Therefore,the specific impact path of private equity investment on the performance of innovative enterprises is realized by affecting the financial indicators such as profitability,solvency,operation ability and growth ability of enterprises.Finally,it makes a specific analysis of the case of private equity investment introduced by Lanqi technology in March 2018,introduces the enterprise situation of Lanqi technology before the introduction of private equity investment,and analyzes the deep reason why Lanqi technology introduced private equity investment is that the profitability and operating capacity of the enterprise have not reached the best state of enterprise development.By comparing the financial situation of Lanqi technology before and after the introduction of private equity investment,this paper analyzes the change of enterprise performance level after private equity investment is involved in innovative enterprises,and makes an empirical study.Finally,it comes to the conclusion that private equity investment institutions' involvement in innovative enterprises can broaden the financing channels of enterprises,improve the efficiency of capital utilization,alleviate the internal principal-agent problem,improve the management efficiency and improve the industry reputation of enterprises.According to the conclusion of the case study,in order to further improve the fit between China's private equity investment institutions and innovative enterprises,this paper puts forward improvement suggestions from the level of innovative enterprises,PE Institutions and the government,in order to improve the "green channel" of external financing of China's innovative enterprises and provide guarantee for the development of China's innovative enterprises.