Value Of Private Equity Investment To China’s Biomedical Industry Impact Study

With the satisfaction of people’s material life,people pay more and more attention to life and health.In addition,the aging problem of China’s population structure and the COVID-19 epidemic have increased people’s demand for medical and health in recent two years,it lead to the domestic biomedical industry develop rapidly.Because Biomedical enterprises need large-scale capital investment,high technical content,slow return and long research and development cycle,the emergence of private equity investment can complement its resources and achieve win-win cooperationBy studying the value influencing factors in the development of biomedical enterprises and the specific impact of private equity on the value of biomedical enterprises,It will provide important reference for biomedical enterprises to solve the funding problem through private equity investment and the good development of private equity investment institutions.Private equity investment mainly takes high-growth enterprises as the investment target,and takes high-yield exit as the investment target,which can be effectively combined with the demand of biomedical enterprises.Through the empirical analysis of the impact of private equity investment on enterprise value,further explores the promotion of private equity investment on biomedical industry.In this paper,254 biomedical enterprises that have been listed for more than two years since 2013-2019 and have not been delisted are selected as sample data,and then eliminate data with incomplete ST and data indicators,Finally,this paper made an empirical analysis of the remaining 151 enterprises,the following conclusions are drawn:First,private equity investment has a positive correlation with biomedical value.Second,the shareholding ratio of private equity investment and the number of joint investments can improve the value of biomedical enterprises,but the reputation of private equity has no significant impact on enterprises.Thirdly,there is a significant positive correlation between R&D intensity and enterprise value,and there is a significant lag,with an average period of 2 years.Through the empirical analysis and research on the influence of private equity investment on the value of biomedical industry,on the one hand,it provides theoretical support for the choice of financing methods for biomedical enterprises;on the other hand,it provides reference for the government to formulate financial support policies for the biomedical industry.