A Review of Research on the Impact of Equity Investment on the Debt Financing of Invested Enterprises

Abstract

To promote the theoretical and empirical research on the linkage of “stock loan debt insurance”, this paper summarizes the current situation of English and Chinese literatures research on the impact of VC/PE on the debt financing of invested enterprises. At present, the relevant research on the impact of VC/PE on the debt financing of invested enterprises in English literatures mainly focuses on the role and mechanism of third-party VC/PE, the role and mechanism of bank-affiliated VC/PE. The relevant research on the impact of VC/PE on the debt financing of invested enterprises in Chinese literatures mainly focuses on the direct role of third-party VC/PE and the mechanism of third-party VC/PE. From the relevant research results of English literatures and Chinese literatures, scholars generally believe that VC/PE has a positive impact on the debt financing of invested enterprises. The certification effect, corporate governance effect and ownership effect of VC/PE are the main mechanisms. In general, scholars’ research on ESG equity investment decisions of equity investment institutions for technology-based SMEs is relatively weak; in addition, scholars have rarely studied the impact of ESG equity investment intervention on the credit behavior of banks and technology-based SMEs. Under the concept of ESG, the academic research on the theoretical quantification and empirical estimation of the influence mechanism of ESG equity investment on the bank credit decision-making of technology-based SMEs needs to be carried out urgently.