Research On The Influence Of Private Equity Investment On Enterprise Performance

The comprehensive improvement of China’s economy and society and the highquality development of the national economy can not be separated from the healthy development of China’s private enterprises around the world.Although the development speed of China’s private enterprises is very gratifying,in fact,many small and medium-sized private enterprises in the early stage of development do not develop smoothly through bank investment.As more and more Chinese private enterprises turn to private equity investment for corporate financing,In order to increase the company’s capital use,so as to achieve the purpose of company transformation or upgrading,and then improve the company’s operating performance.At the same time,many companies participating in private equity investment have also taken advantage of private equity investment to improve their own company’s operating performance.Therefore,it is of great practical significance to study the impact of private equity investment on the company’s operating performance.On the basis of studying and summarizing the academic research achievements of scholars at home and abroad,this paper takes the impact of private equity investment on business performance as the main research topic.Through in-depth analysis of the concentration change law of private equity investment under the premise of different nature and different financial indicators of enterprises,it studies the mechanism of private equity investment on business performance,Thus,the research hypothesis of the important role of private equity investment on business performance is given.Further,based on the assumptions and principles of this study,this paper takes the company’s overall operating performance as the main explanatory variable,private equity investment as the main core analytical variable,and asset liability ratio,the company’s fixed asset turnover rate,net return on assets,R&D investment expenses,average return growth rate,and the proportion of the largest three other shareholders as the main controlling factors,This paper uses wind database and China Tai’an database to collect the information of 150 companies with private equity investment in all Ashares in the Shanghai and Shenzhen stock exchanges from 2008 to 2020,establishes a panel data module,and conducts theoretical research and empirical regression analysis.The following results are obtained:private equity investment can more effectively promote the improvement of the company’s overall operating performance;Compared with ordinary private enterprises,private equity investment of state-owned enterprises can effectively promote the improvement of the overall operating performance of the company;Compared with enterprises with low asset liability ratio,enterprises with high asset liability ratio can be more effectively improved by private equity investment;Compared with enterprises with high turnover of fixed assets,enterprises with low turnover of fixed assets can be invested by private equity more effectively to improve the overall operating performance of the enterprise.According to the results of this paper,we propose to stimulate private equity investment in small and medium-sized enterprises;Further increase support for private enterprises;The financing methods of small and medium-sized enterprises in different development periods should be flexible;Give more policy suggestions such as capital policies to enterprises that take the initiative to upgrade their own technological transformation.The innovation of the paper lies in the research and analysis of the role of the enterprise’s asset liability ratio,inherent asset turnover rate,net asset return rate,R&D investment expenses,per capita remuneration,the proportion of the largest three shareholders and other factors on private equity investment’s impact on the enterprise’s business performance under different indicators,the explanation of the impact mechanism of private equity investment on the enterprise’s business performance,and the use of panel regression analysis to draw feasible conclusions.