The Influence Of Private Eauitv Investment On Inefficient Investment Of Small And Medium-sized Enterprises

Investment and financing,as the most important daily decisions of small and medium-sized enterprises,play an equally important role.Today,when the financing difficulty of small and medium-sized enterprises is widely concerned,we should also pay attention to the problem of inefficient investment of small and medium-sized enterprises.In this paper,I find the problem of inefficient investment in small and medium-sized enterprises in China,specifically underinvestment and overinvestment.In terms of the specific distribution of inefficient investment,underinvestment is more common,but overinvestment is more complex and severe.Along with the further improving capital market,government and society increased awareness of specification development of PE,PE that there are both "financing" and "wisdom" effect of capital also rapid development in our country,from the perspective of the development history and the operation characteristics of PE,PE will help alleviate our country small and medium-sized enterprises of the efficiency of investment,We should promote the transformation of the financial sector from the virtual to the real,prevent the economy from being "overheated" due to excessive investment and "depression" due to insufficient investment from the micro level,and achieve healthy development of economy.This paper try to verify the three questions by adopting the methods of theoretical and empirical analysis: The first one,PE for small and medium-sized enterprise the investment efficiency of corrective action: business with PE background,whether in underinvestment or overinvestment is superior to no PE background of enterprise,demonstration that PE can restrict the abuse of cash flow enterprise invested,restrain the investment efficiency.The second: Using the Fisher’s Permutation test,the study found that PE has a stronger correction effect on overinvestment than underinvestment.Third,this paper verifies the governance mechanism of PE’s inefficient investment in small and medium-sized enterprises.Firstly,PE improves the financing capacity of small and medium-sized enterprises by optimizing the financing environment,and alleviates the lack of investment caused by capital shortage.Secondly,improve the internal governance of enterprises,play the role of active shareholders,reduce the agency cost of enterprises,improve investment efficiency.Finally,value-added services are provided for enterprises,earnings management is restricted,information asymmetry between external investors and enterprises is reduced,agency costs within enterprises are reduced,and inefficient investment is restrained.Through the study of the above three mechanisms,this paper opens the black box that PE affects the inefficient investment mechanism.In order to achieve the goal of high-quality economic development,small and medium-sized enterprises should take the chance to enhance the cooperation with PE and improve the efficiency of capital use.The national government should also further working on the perfection of the capital market,optimize the area and scale of PE development,and jointly achieve a win-win situation.