The Overcapacity Measurement Of North China Iron And Steel Enterprises And Its Inlfuence On Corporate Proiftability

The overcapacity in China has become one of the obstacles that hinder the economicdevelopment following with the progress of science and technology, it has become a difficultproblem in the present stage of economic operation. Overcapacity will be some negativeeffects on the economy no matter the short steam or the long steam. Predecessors’overcapacity research is about the influence of the macro aspects of overcapacity formationmechanism research, the article will look from the overall to local, researching enterprisequantitative measure of overcapacity, and if it has any impact on corporate profitability, andthe relevance between overcapacity and corporate profitability.The article analyze the literature of the various measure of capacity utilization level,ultimately determine the use of the output gap method based on production function, calculatethe capacity utilization by the calculate of potential out, and to calculate the overcapacity.Thispaper calculated the respective production capacity utilization of the north China listed steelcompanies in China from2000to2013, the result shows that the respective overall trend isroughly same, twice in2002and2002to achieve peak of excess production capacity, annualproduction capacity of2009-2013surplus leveled off. The curb overcapacity policy in Chinahas been suppressed the overcapacity of north China’s companies that in season,but thepolicy exists the lag effect. Using the mixed effect panel data model, analyzing the northChina each listed steel companies with overcapacity on its corporate profitability. This articleresearch has shown that the iron and steel enterprises overcapacity does not play a decisiveimpact on the corporate profitability, the degree of influence belongs to the neutral associated.In this paper the suggestions to control overcapacity and enhance the profitability of enterpriseis to increase the imput of science and technology. Science and technology is the No.1productive force, it’s the source of enterprisng profit. This paper is divided into three parts: The first part points out the research background,research significance and literature review, and introduces the structure of the article, ideasand innovations, and theoretically analyzes the current situation of the development of ironand steel enterprises; Tthe second part of this article determines the excess capacitymeasurement method and the establishment of capacity measurement model, the article isbased on the basic data of the Chinese iron and steel enterprise from2000to2013, using themethod of the Output gap method, analysing the degree of excess production capacity of theenterprise profitability; The third part of the article gets corresponding conclusions byanalysing the research and gives corresponding suggestions of Excess capacity and Excesscapacity impact on corporate profitability on this basic.