Study Of Herding Effect In Iron And Steel Industry Enterprises Investing Convergence

Recently, as the situation of global financial crisis getting worse, the problem of redundant construction in Chinese iron and steel industry which troubles us a long time becomes more prominent. The governments have paid much attention to this redundant construction problem caused by steel enterprises investing convergence, but failed to resolve it effectively. This article starts from the study of the enterprises action, emphasizes that the herding behavior of enterprises is the foundation of redundant construction or excess capacity. It also seeks the endogenous factors which cause industries to enter excessively, and explores policy suggestions in management of the redundant construction. Therefore, in the basis of studying domestic and foreign relevant literatures, make more in-depth study in the repeated construction caused by investment convergence of steel enterprise.This paper bases on the comparative study of our steel industry and foreign steel industry, and obtain the characteristics of our regional type of market structure. On the basis of this, it makes a deep analysis of the reasons in forming the regional type of market structure, and from the historical evolution of Chinese iron and steel industry, it puts forward the views of path dependence which includes technical path dependence and institutional path dependence. Establishes game theoretical models, namely, a phase of large-scale steel enterprises of the mixed strategically game. Through the model, it makes a more in-depth analysis of investment in large-scale steel enterprises convergence and makes a example analysis of the two large steel enterprises in the region, and proves the investment convergence between the steel enterprise through rigorous mathematical derivationIn the empirical study, this article firstly makes a judgment on the market region of the sample listed companies. On this basis, through financial analysis platform and the collected data from Finance Department, it analyzes on the interaction hypothesis in according to theoretical area within a large steel corporate investment behavior, and prove the herd behavior as well as steel enterprises to invest in state-owned whose stakes differently that cause different impact on the scale of the investment of steel enterprises .Finally, the thesis puts forward several policies on the management of the redundant construction in Chinese iron and steel industry.