Research On The Influence Of Cross-Border M&A On The Capacity Utilization Rate Of Chinese Manufacturing Enterprises

Since the reform and opening up,China’s economy has developed rapidly.However,the simple and extensive development mode has made China’s manufacturing industry accumulate a large number of overcapacity.Because of the lasting impact of the 2008 financial crisis,the problem of overcapacity in the manufacturing industry has become increasingly serious,which has become a major obstacle to the transformation and upgrading of China’s economic.The encouragement to invest aboard and the "the Belt and Road" initiative provide a new way to reduce overcapacity: encourage enterprises to participate global cooperation on production capacity and achieve mutual benefit and a win-win outcome,which can not only meet the capacity needs of the host country,but also reduce overcapacity with the help of the international market and improve capacity utilization rate.Based on this background,studying whether crossborder M&A can improve its capacity utilization rate is significant.Taking 1108 listed manufacturing enterprises in China as samples,this paper quantitatively studies the impact of OFDI through cross-border M&A on capacity utilization rate from 2010 to 2019.Firstly,this paper analyzes the current situation of cross-border M&A and manufacturing capacity utilization rate of China,and calculates the capacity utilization rate of sample enterprises from 2010 to 2019 by using stochastic frontier production function model(SFA).Then,based on product life cycle theory,marginal industrial expansion theory and synergy effect theory,this paper summarizes the mechanism of the impact of cross-border M&A on capacity utilization rate.Then,the propensity score matching method(PSM)and differences-in-differences model(DID)are used to empirically test the impact of cross-border M&A on capacity utilization rate,and expand the impact of the number of cross-border M&A on capacity utilization rate.In addition,considering the heterogeneity of enterprises,this paper classifies the samples according to ownership,investment location development level and whether they participate in the "the Belt and Road" initiative.Finally,the robustness test is carried out by replacing the measurement method of explained variables and the matching proportion of PSM.The main conclusions of this paper are as follows: Firstly,cross-border M&A can improve the capacity utilization rate continuously.Secondly,the improvement of the capacity utilization rate improved by cross-border M&A increases first and then decreases in an inverted "U " shape with the increase of the number of M&A.Thirdly,different types of enterprises can improve the capacity utilization rate by cross-border M&A,but the improvement of non-state-owned enterprises is higher than that of stateowned enterprises;The promotion effect of investing in developing countries or regions is more obvious than that of investing in developed countries or regions;The implementation of the "the Belt and Road" initiative has an additive effect on the improvement of the capacity utilization rate.Finally,according to the research results,the following suggestions are put forward: Strengthen capacity cooperation with countries along the "the Belt and Road";Expand diversified overseas markets actively and focus on host countries with different levels of economic development;Explore the potential of the domestic market deeply and promote the construction of the “Dual Circulation” development paradigm.