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An Empirical Analysis of Private Equity Investment Affecting Enterprise Value

Other title私募股权投资影响企业价 值的实证分析
ContributorsLi, Jianhong
DirectorsHau, Harald
Number of pages60
Imprimatur date2020
Defense date2020

The lack of long-term and stable financial support for SMEs is the fundamental reason why enterprises cannot develop for a long time. At present, the situation of financing difficulties for SMEs is becoming more and more serious. Private equity (PE) investment has emerged as an important financing method. Private equity investment, while broadening the financing channels of SME capital markets, brings advanced management experience to enterprises, which helps enterprises to develop rapidly and effectively. According to the statistics of the Zero2IPO Research Center, the active investment institutions in China's equity market have grown from more than 200 in 2000 to more than 14,000 in 2018, with a total asset under management over RMB 9 trillion. Great progress has been realized in the scale and development of the industry. In addition, with the launch of the GEM in 2009, PE investment industry met new opportunities of development and became popular. At present, the development of China's PE investment business is still at an early stage. Neither relevant policies, laws and regulations nor supporting mechanisms are mature enough. Therefore, researches on China's PE investment business needs to be carried out. In this context, more and more scholars are beginning to focus on the field of PE investment.

This paper focuses on whether PE investments can fundamentally increase the enterprise value. The basic theory is sorted out to serve as the theoretical basis for this study. Through a systematic analysis, this paper draws out 4paths of PE investment affecting enterprises, which are the influence on technological innovation, corporate governance activities, dividend distribution decision and earnings management, respectively. And through empirical analysis, it finds the empirical basis of the impact of PE investment on enterprise value, and investigates how PE investments affect enterprise value based on the difference in investment characteristics such as investment duration and whether the investment is joint or not. This paper conducts an empirical test by selecting the listed companies of the Shenzhen Stock Exchange GEM in 2015-2018 as sample. The results show that the investment of PE firm will significantly increase the value of the target enterprise.

This paper makes a detailed analysis of sample data. The conclusion of the study is that private equity investment will have a significant impact on the value of target enterprises. Private equity investment plays an important role in the modern governance structure of small and medium-sized enterprises in China This paper enriches the existing literature and provides constructive suggestions for the health development of the PE investment market.

  • PE investment
  • Enterprise value
  • Investment term
Citation (ISO format)
LI, Jianhong. An Empirical Analysis of Private Equity Investment Affecting Enterprise Value. 2020.
Main files (2)
Thesis - Version chinoise
  • PID : unige:174271
  • Thesis number : DAPS-0006

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Creation09.01.2024 14:51:39
First validation18.01.2024 07:06:40
Update time11.03.2024 14:35:19
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