Research On The Motivation And Performance Impact Of Introducing Private Equity Investment In Jiayuan Technology

Private equity investment is a professional equity medium to long-term investment in which investors usually sell their holdings through listing,transfer and buy-back to make an equity exit and thus gain income.In recent years,the number and volume of private equity investments in China has been on the rise,and its creation and development has expanded access to financing while also overcoming,to some extent,the shortcomings of traditional financing methods.For emerging industries in particular,private equity investment can provide significant capital for the development of an enterprise,alleviating the pressure of financing and transferring some of the risks faced by the enterprise in its operations,as well as optimizing the capital structure of the enterprise,providing strategic advice on the management of the enterprise and offering a number of value-added services for the further development of the enterprise.Private equity can use its own resources to contribute to the development of a company,and its impact on the social economy is increasing as the volume of investment continues to grow.Based on this background,the study of the motivations and performance impact of the introduction of private equity investment by enterprises is instructive in promoting the development of the private equity industry and the healthy growth of enterprises.This thesis explores the motivations of both investors and financiers and analyses the impact of private equity investment on corporate performance from a case study perspective.The thesis firstly explains the background and significance of the study,namely the development of the private equity market in China and its role in the development of investee companies,reviews the current state of research on the motivations of private equity investment and its impact on corporate performance,summarizes the basic concepts and theories on private equity investment,and further explains the mechanisms and consequences of private equity investment on corporate performance.This thesis takes the introduction of private equity investment by Jiayuan Technology as a case study,introduces the basic situation of the introduction of private equity investment by Jiayuan Technology and the main process of the investment,analyses the motivation of the investment from the perspective of both investors and financiers,then introduces the impact mechanism of private equity investment on the performance of Jiayuan Technology in terms of solving the financing needs,improving the governance level and providing value-added services,and finally analyses the impact of private equity investment on the performance of Jiayuan Technology through financial indicators,governance structure and market performance.Finally,the impact of private equity investment on Jiayuan Technology’s performance is analyzed through financial indicators,governance structure and market performance,and the impact on performance is evaluated through the grey correlation method.From the study,it was concluded that private equity investment could enable the integration of resources between investment and financing,so Jiayuan Technology introduced private equity investment.Private equity investment addresses Jiayuan Technology’s financing needs,allowing it to expand production and improve its financial position.The entry of private equity investment has optimized Jiayuan Technology’s shareholding structure,increased the efficiency of its supervision and management and improved its governance.The private equity investment provided value-added services to Jiayuan Technology to help its acquisition and listing,which enhanced Jiayuan Technology’s market performance.The grey correlation analysis shows that the year with the highest number of grey correlation coefficients is the year when private equity investment entered Jiayuan Technology,indicating that the introduction of private equity investment in Jiayuan Technology had a positive effect on corporate performance.Based on the content and findings of this thesis,the following insights can be obtained:Firstly,private equity institutions should seize the opportunity to fully understand the industry development background,business conditions and risk management of enterprises,and develop healthily and quality together with their investee companies.Secondly,the enterprises concerned should enhance their development potential to attract private equity investment,and at the same time strengthen the cooperation with private equity institutions to make full use of all resources in order to achieve higher financing efficiency.Finally,we should improve relevant laws and regulations,implement comprehensive supervision and management of the private equity market,and establish an efficient information platform for investment and financing transactions,so as to further prevent market risks,standardize the operation of the market and improve the efficiency of resource allocation.