Asset Lock-in, Overcapacity And International Governance Research

The problem of overcapacity is becoming increasingly serious in china,“Cut Capacity" has become the most important part of the supply-side structural reform,different from the previous researches which focus on the macro and the meso levels of overcapacity,the paper summarizes the definition,the types,the reasons of the overcapacity and the international theories,bases on the unique situation of a new overcapacity since 2008 in China,take the Chinese manufacturing enterprises as the research object,according to the logic" the entering institutional distortion—excessive investment—the asset specificity/sink—the forced investment — the exiting institutional distortion—the asset lock—excess capacity",with a sample of pooled cross sectional data of the manufacturing listed companies in china from 2007 to 2015,using the research methods of the longitudinal and the transverse comparative analysis,the theoretical analysis and the quantitative analysis,from the institutional distorted forms the low entering barriers,the asset specificity forms the high exiting barriers and the locking effect of interaction analyze the “Permanently” causes of the enterprise overcapacity,and from the outward internationalization and the inward internationalization to make clear the strategic choice of the enterprise overcapacity's government.Firstly,from the multidimensional perspective of the year,the property rights,the regional and the industry,the calculation results with using the Stochastic Frontier Production Function(SFA)method show that the capacity utilization rate of enterprise from 2007 to 2015 presents an inverted U curve relationship,which first increases and then decreases,compares with the state-owned enterprises,the non state-owned enterprises' capacity utilization rate is higher,relative to the local state-owned enterprises,the central state-owned enterprises' capacity utilization rate is higher,the capacity utilization rate of the eastern enterprise is the highest,the central is higher and the western is the lowest,compares with the light industry,the heavy chemical industry capacity utilization rate is lower.Secondly,analyzes the effects of the institutional distortions,the asset specificity and the asset locked on the enterprises excess capacity,and analyzes the effect of the international governance on the enterprise excess capacity with the Cost Function Model.Theoretical analysis shows that the stronger of the institutional distorted and the enterprise's capacity utilization is lower,the higher of the asset specificity,the enterprise's capacity utilization is the lower,and assets locked effect which is interaction between the institutional distortion and the asset specificity reduces the enterprise capacity utilization,the outward internationalization and the inward internationalization strategy improve the enterprise's capacity utilization by the effect of the output growth and technology upgrading.Then,bases on the conceptual models of asset locked,analyzes the effect of the institutional distortion,the asset specificity and the assets locked on the enterprise overcapacity with the methods of SFA,the Data Envelopment Analysis(DEA)and the multiple regression,the research shows that the institutional distorted,the asset specificity and the asset locked which is the interaction between the institutional distorted and the asset specificity have an significant negative influence on the enterprises' capacity utilization rate,the asset locked which originates from the causal cycle and the cumulative stacking of the institutional distortion and the asset specificity is the root cause of the enterprises overcapacity.In order to reveal the effects of the institutional distortions on enterprise capacity utilization,the research choose the subsidy intensity as the proxy variables,the study analyzes the situational dependence and the path of the subsidy intensity,the research shows that there is an inverse U curve relationship between the subsidy intensity and the enterprise capacity utilization,and the critical point is 0.81%,the subsidy intensity has significant negative impact on the state-owned enterprises capacity utilization,the subsidy intensity and the capacity utilization of the non state owned enterprises has inverted U curve relationship,and the critical point is 1.45%,the excessive government subsidies lead to the institutional overcapacity.The asset specificity has a significant negative impact on the state-owned and non state-owned enterprises capacity utilization,the asset locked which originate from the enhanced interaction of between the subsidy intensity and the asset specificity has significant negative impact in the direct way on the state-owned enterprises,the high subsidy group enterprises and the high subsidy enterprises of the non state-owned,and the R&D intensity and the financial leverage are the important path which the subsidy intensity,the asset specificity and the asset locked impact on the enterprise capacity utilization,moreover,the asset locked reduces the enterprise capacity utilization through an indirect effect which include the crowding out effect to the enterprise R&D investment and the deteriorating effect to the enterprise financial leverage,and do a useful attempt to open the "black box" of the enterprises overcapacity.Last,from the perspective of the inward internationalization and the outward internationalization,analyzes the effects of the international governance to the enterprise's overcapacity with multiple regression method,the research shows,the outward internationalization positively moderates the negative effects of the asset specificity on performance,the inward internationalization positively moderates the negative effects of the overcapacity on performance,the cooperative strategy of the outward internationalization and the inward internationalization is the important measure to resolve the enterprise's overcapacity.In order to further reveal the influence mechanism of the outward internationalization to the enterprise capacity utilization,using multiple regression method to analyze the influence of the outward internationalization to the distorted institutional and the asset specificity,the regression results of the overall sample,the subsidy intensity grouping and the property grouping show that the outward internationalization positively moderate the negative impact of the institutional distortions and the asset specificity to the enterprise capacity utilization,so the idea of internationalization governance is put forward to solve the enterprises overcapacity.