Private Equity Investment Funds' Impact on Operational Capabilities: A Port Enterprise Sample

Abstract

Xu, J. and Liu, J.G., 2020. Private equity investment funds' impact on operational capabilities: A port enterprise sample. In: Qiu, Y.; Zhu, H., and Fang, X. (eds.), Current Advancements in Marine and Coastal Research for Technological and Sociological Applications. Journal of Coastal Research, Special Issue No. 107, pp. 334-340. Coconut Creek (Florida), ISSN 0749-0208.Based on the unbalanced panel data of 544 listed port enterprises of New Third Board Market from 2011 to 2016, this paper empirically analyzes the impact of private equity investment funds on the operational capabilities of port enterprises. The empirical results show that with the increase of the private equity holdings, the total asset turnover rate and inventory turnover rate of port enterprises increase, the asset-liability ratio decreases, the operational capacity is enhanced, and the solvency is improved. On the basis of the fact mentioned above, the development environment of coastal area enterprise operation management is further optimized. Through conducting round return for the fund, this paper finds the later the private equity fund enters the coastal area enterprise, the more rounds it enters indicating that the higher the private equity fund management party recognition to the invested port enterprises, and the more participation in the operation management after entering the enterprise, the more comprehensive impact on the operational capabilities of the port enterprises.