Open AccessResearch on the Influencing Factors of Establishing Buyout Fund And Value Creation Benefits
Author(s) -
Xianyang Qiu,
Zhou Yan
Publication year - 2021
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1865/4/042132
Subject(s) - leveraged buyout , business , finance , private equity , shareholder , leverage (statistics) , fund of funds , private equity firm , global assets under management , institutional investor , market liquidity , corporate governance , machine learning , computer science
Buyout funds have risen and developed rapidly in China since 2000. In 2011, “Paradise Dakang” set off a countrywide upsurge of establishing “PE + listed companies” buyout funds. Based on the data of buyout funds set up by listed companies and private equity investment institutions during 2011-2017, this paper studies the influence factors of their decision to set up buyout funds. The research finds that enterprise scale, cash holdings, operating performance and operating revenue growth are positively correlated with the possibility of establishing buyout funds, while leverage level and the proportion of the largest shareholders are negatively correlated with the possibility of establishing buyout funds.The establishment of “PE + listed company” model buyout funds can significantly increase shareholders’ wealth in the short term.