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Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

Research on the Impact of Private Equity on the Business Performance of GEM Listed Companies

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DOI: 10.25236/icbdem.2020.004


Yanliang Zhang, Yaping Sun, and Leya Zhang

Corresponding Author

Yanliang Zhang


Private Equity (PE) refers to the use of non-public fundraising (private placement) to invest funds in non-listed company equity or invest funds in non-public offerings of listed company stocks. PE institutions promote the growth and development of the company by providing funds, technical support and improving corporate governance, and consider the exit methods and mechanisms in the future implementation of the transaction process, and PE can gain profit by helping target companies to go public, mergers and acquisitions, management buybacks, etc. 107 companies listed on the GEM are used as research samples of this paper, and 107 annual cross-sectional data of 2017 are used for OLS regression and robustness test to obtain the qualitative impact of PE on GEM listed companies. The research results show that the existence of PE has a positive impact on the company's business performance. Finally, the paper proposes corresponding policy suggestions for PE development from the government, private equity investment institutions and enterprises.


Private Equity; GEM Listed Companies; Business Performance; Net Profit Rate