A Study On Government Environmental Regulation And Mergers And Acquisitions Act

Low carbon development is becoming the new trend of the global economic and social development. Optimizing the industrial structure by enterprise merger and acquisition is a very important influencing factor for the development of low carbon economy. As a developing country, our country are faced with more serious problems associated with how to balance the relationship between economic development, environmental protection, and industrial pollution prevention and industrial integration trade-offs between performance issues; Utilizing the changes of mergers and acquisitions trend to adjust the industrial structure requiring the effective intervention of government environmental regulation. The trend of mergers and acquisitions in this paper refers to the development direction of mergers and acquisitions may occur between the mild polluted industry, moderate polluted industry and high polluted industry. In this paper, we just focus on studying the three cases, which are lightly polluted industry mergering and acquisitioning highly polluted industries, mild polluted industry mergering and acquisitioning moderate polluted industry, and moderate polluted industry mergering and acquisitioning highly polluted industries.The starting point and the foothold of this paper is to detect whether the government environmental regulation have any impacts on industrial structure adjustment and its mechanism of action using the variation trend of mergers and acquisitions. On the basis of summarizing the predecessors’ research, this paper studies the environmental regulation of our government, the trend of mergers and acquisitions, and the mechanism of action of industry consolidation. Firstly, based on the grey correlation method, the author classifies the Chinese industrial sectors into three categories, which are highly polluted industry, moderate polluted industry, and mild polluted industry; Then this paper takes the environmental regulation law promulgated by the state council in2005as a cutoff point, using the method of descriptive statistics and graphical display to analyze merger trend changes of the listed companies before and after each of the three years (2002-2005and2005-2009)of the environmental regulation. Furthermore, this paper uses the econometric model to do the empirical analysis of the influence of environmental regulation on merger and acquisition trend changes. Finally, this paper put forward the relevant conclusions and enlightenment. The analysis results show that the change of environmental regulation has certain influence on merger and acquisition trend. After implementing the environmental regulation, the number of mild polluted industry mergering and acquisitioning highly polluted industries, mild pollution industry mergering and acquisitioning moderate pollution, and moderate pollution industry mergering and acquisitioning highly polluted industries have significant growth. And in the second year, the mild pollution industry mergering and acquisitioning highly polluted industries experiences rapid growth; After environmental regulation being taken into action, the lightly polluted industry mergers and acquisitions highly polluted industry are becoming more popular, Therefore, we need to improve the environmental regulation system, intensify government environmental regulation, and optimize the structure of government environmental regulation.