Study On Overcapacity By Merger And Restructuring

The overcapacity is a major predicament in China’s current economic development.The government has continuously introduced relevant policies to encourage mergers and reorganizations in overcapacity industries.As a pillar industry in the national economy,the steel industry has a severe overcapacity that poses significant resistance to China~’s economic development.This paper analyzes China~’s steel output,supply and demand structure,and market concentration,and finds that China~’s steel industry The situation of high output,mismatched supply and demand structure,low market concentration,and excess capacity is severe.In the overcapacity governance path,mergers and reorganizations are conducive to optimizing production capacity,increasing market concentration,and improving the level of technology.Its internal logic is through the merger and reorganization between companies,and the market concentration of the industry will increase.There is still a big gap between the market concentration of steel industry in China and developed countries.From the perspective of economies of scale,China’s steel The industry should be in the stage of increasing economies of scale.Increasing the market concentration of the industry is conducive to the use of economies of scale,thereby promoting technological improvement and efficiency improvement of the steel industry and eliminating backward production capacity.Based on this,this paper studies the efficiency of listed companies in China’s steel industry through the DEA model,and compares the efficiency before and after mergers and reorganizations.First,mergers and reorganizations have inconsistent effects on the efficiency of listed companies,efficiency,efficiency,and efficiency.There are three situations of instability and instability.Second,from the regional perspective,mergers and acquisitions among listed companies in the steel industry in China have occurred within the region,and there have been significant differences in efficiency between regions.From the empirical results,this paper holds that there are still some obstacles in the merger and reorganization of China’s steel industry,including the imperfect market mechanism,the lack of capital mobility across ownership and regions;the government has become an interest participant in mergers and acquisitions,and the overall innovation capacity of the industry is insufficient.Backward production capacity floods the market.Finally,based on the current situation of overcapacity in China’s steel industry and the resistance of mergers and reorganizations,this paper proposes to speed up the process of marketization and promote capital flow;clarify the responsibilities of the government and establish industry standards;increase innovation support,improve the supply structure and other related recommendations.