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The impact of the Growth of High-tech companies on Investment income: a study in China

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  • Zhu Huijuan

    (Asia Metropolitan University, Malaysia.)

Abstract

In China, private equity investment plays an important role in economic growth, and high-tech enterprises are also an important force to promote China’s economy. There is a certain connection between the two. With the characteristics of high growth and high return, high-tech enterprises attract the attention of private equity investment. Based on this, this paper focuses on the research on equity investment and enterprise growth of China’s gem high-tech enterprises. First, what is the relationship between equity investment, enterprise growth and investment income? The results of equity investment are affected by many factors, not all equity investments can get returns; No matter how excellent and powerful the company is, it may also produce low performance due to the inability to achieve “scale effect†. Therefore, this paper studies the relationship between equity investment, enterprise growth and investment income. Second, what is the relationship between equity investment, enterprise growth and internal control? The industry should promote the establishment of a benign investment mechanism in the industry market, guide the society to have a correct understanding of the industry, improve the investment income level of the industry by virtue of the implementation of preferential policies, and reduce the industry risk by using the market-oriented credit mechanism; PE investors should grasp both enterprise growth and internal control.

Suggested Citation

  • Zhu Huijuan, 2021. "The impact of the Growth of High-tech companies on Investment income: a study in China," International Journal of Science and Business, IJSAB International, vol. 5(12), pages 23-35.
    • Handle: RePEc:aif:journl:v:5:y:2021:i:12:p:23-35
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    References listed on IDEAS

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    1. Albert N. Link & Christopher J. Ruhm & Donald S. Siegel, 2014. "Private Equity and the Innovation Strategies of Entrepreneurial Firms: Empirical Evidence from the Small Business Innovation Research Program," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 35(2), pages 103-113, March.
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