Study Of The Relation Between Mergers And Acquisitions And Industry Endgame In China Based On Industry Endgame Curve

With China's accession to the WTO and the end of split-share structure reform,China's M & A market gradually gets market-oriented.Changes in the environment have given birth to a growing number of strategic mergers and acquisitions. M & A market is no longer a place of government-led,the elimination of loss-making enterprises,nor is a place for major shareholders to arbitrarily tunneling.More and more Chinese companies make strategic use of M & A market to industrial upgrading and to resist foreign investors to seize the Chinese market.This also means that the function of China's M & A market to promote the evolution of industry is gradually reflected. Based on the above research background,this paper studies relation between China's M & A and the evolution of industry.In this paper,the theoretical research and case studies are combined.Industry Endgame Curve make us better anticipate the future of industrial development,as well as make forecast possible to industry mergers and acquisitions that will occur.This article holds to study on the relationship between China's M & A and the evolution of industry,the first job is to forecast the industry as a research sample at what stage of industry evolution.Based on the Industry Endgame Curve,this paper establishes the relationship model of M & A and industrial evolution and according to the four-stage characteristics of Industry Endgame Curve,designs five indicators to identify the stage of Industry Endgame Curve of the industry,including the number of companies, industry concentration,industry barriers to entry,industry supply and demand trends, industry profit margins.The characteristics of different stages of evolution can occur one correspondence in different types of M & A cause,so by judging the industry in which stage of the evolution,naturally able to predict the occurrence of mergers and acquisitions.In support of the above model,this paper chooses paper industry as case studies. Studies suggest that the paper industry is in the late start-up phase,the"big swallow small"type of horizontal and vertical mergers and acquisitions should be the mainstream of the type of M & As which will take place,strong horizontal joint acquisition is unlikely to occur.Then M & A transactions which occurred in 28 A-share listed companies in paper industry from 2002-2008 years have been tested and found that the function of M & A transactions to promote the industry evolution is the beginning,but there are still many mergers and acquisitions irrational motivated,and mergers and acquisitions occurred in companies with strong characteristics.