| This article first demonstrates the basic theories of enterprises merger and restructuring,mainly including the five types listed below. 1) economy of scale theory,which states that after merger the enlarged scale of an enterprise will lead to lower costs and higher profits;2) market competitiveness theory which states that by merger and restructuring an enterprise will strengthen its monopoly,enhance its market competitiveness and obtain excess profits;3) the theory of low cost -low risk expansion,which states that by merger an enterprise will diminish the barriers on entering a new trade and lower the costs and risks of expansion by utilizing the resources of the enterprise before merger;4) transaction costs theory,which states that economizing transaction costs is the only motive for an enterprise to restructure and enterprises merger is in essence a replacement of business organization for market aimed at reducing the cost in production and transaction- 5) price undervaluing theory,which states that merger will happen when a company overvalues a target company compared to the market.The article also summarizes the evolution of merger and restructuring of capitalist enterprises. It is illustrated that this evolution has a history of more than one hundred years with five peaks and greatly promotes the development of capitalist enterprises.Based on the theories mentioned above,the essay reviews the empirical history and recent conditions of state enterprises merger and summarizes its functions and characteristics.State enterprises merger in our country has experienced a history of happening and gradual developing. In 1984,some advantageous enterprises merged with those disadvantageous ones in order to lessen the fiscal burden;in 1987,the first boom of merger was witnessed after the thirteenth National Congress of the Communist Party;since 1989,under the condition of macroeconomic austerity,the government reinforced its role in the process of state enterprises merger and exercised some compulsory mergers. In 1992,China confirmed the direction of reform as establishing market economy. Enterprises merger became a significant component of state enterprises reform and the means of merger grew diversified.Generally speaking,the emergence and development of state enterprises merger and restructuring have tremendous impact:1) they are helpful to adjust the national economic structure and promote economic development;2) they are helpful to better product structure;3) they are helpful to improve the organizational structure of enterprises and realize economy of scale;4) they are helpful to break the local protectionism and accelerate the development and perfection of market system.During the economic transition,the merger and restructuring of state enterprises mainly have five characteristics:1) the diversity of the decision-making subjects;2) assumption of the debt burden as the main aim;3) the diversity of aims of enterprises merger,4) the dual nature of defining the merger prices;5) the unregulated condition in general.The article emphasized on the present problems based on the summarization of the history and recent trend of state enterprises merger and restructuring:1) The ambiguity of property rights. Since reform,the state-owned enterprises have obtained some possession rights,right of use and usufruct of the assets. But the relations between ownership and management of enterprises were not in order yet;the problems of nominal property owners andindistinct property boundaries result in indefinite delegates of owners and make it hard for the responsible entities of assets to form and for enterprises to operate according to the market laws.2) Government intervention. In the process of state enterprises merger and restructuring,the government intervened too much by exercising administrative order to merge,compelling advantageous companies to annex disadvantageous companies and allowing the widespread of local protectionism. These lead to behaviors not in accordance with the market and ha... |
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