On the afternoon of April 23, 2024, at the invitation of Vice Dean and Professor Li Jie from the Shenzhen Technology University Business School, Professor Wilbur Chen, a Harvard University PhD in Accounting and professor at Hong Kong University of Science and Technology, delivered a lecture titled "Private Equity and Digital Transformation" to the students for 2022 majoring in International Business. The event was held in room C5-109 at Shenzhen Technology University.
The lecture deeply explored the role of private equity (PE) in digital transformation. During the session, Professor Chen presented his research analysis based on the structure of research significance, research design, key datasets, shifts in the PE model, PE and digital investment, PE expertise and growth equity, the consequences of PE-driven digital investment, and key takeaways. Empirical analysis in his research highlighted that PE investment is closely associated with increased investments in digital technologies by portfolio companies, as evidenced by IT spending and the hiring demand for AI skills. This relationship is particularly pronounced in growth equity investments and in portfolio firms invested by PE investors with greater exposure and expertise in digital technology. The research also indicated that non-IT portfolio companies significantly increase their digital investments after receiving PE investment.
Additionally, the lecture analyzed the potential benefits of digital investments, including their association with increased sales per employee and innovation in portfolio firms following PE entry. Overall, the findings emphasize the trend of PE investors increasingly leveraging digital technology to drive value creation within their portfolio companies.
During the lecture, attending faculty and students actively engaged with questions, discussing research details and methodologies in depth. The questions and perspectives raised by faculty members expanded the research views and provided new directions for Professor Chen's future research. Students deepened their understanding of empirical analysis techniques learned in class through their inquiries. Furthermore, given Professor Chen's extensive educational background, some students engaged him in detailed discussions about study processes and career planning after the lecture, finding it greatly enriching.
This lecture not only enhanced participants' understanding of private equity and digital transformation but also demonstrated the value and impact of academic research, offering a chance for intellectual engagement among the business school's faculty and students. Shenzhen Technology University Business School warmly invites all faculty and students to actively participate in future lectures to explore more cutting-edge topics.
Photos and Text by: Cai Wantong
Reviewed by: Li Jie
