行業產能過剩與企業並購行為研究

Abstract

The main research object of this paper is the behavior of mergers and acquisitions in the industry with excess capacity. We believe that there are two ways to deal with the situation when the enterprises are faced with overcapacity in the industry: One is to continue to remain in the original industry, and take corresponding measures to improve or consolidate the position of the industry in order to integrate industries, increase market concentration and eliminate backward production capacity; the other one is transforming their business, trying to enter into other industries to seek development opportunities. While no matter which path to choose, mergers and acquisitions are a common choice for most enterprises. Looking back at the history of global business development, we will find that most of the enterprises with vitality and competitiveness in history have experienced mergers and acquisitions. George J. Stigler, a Nobel prize winner once said: "an enterprise through mergers and acquisitions of its competitors to become a giant enterprise, is a prominent phenomenon in the modern economic history." In fact, in response to the current prevailing surplus pressure in most industry, Chinese government has repeatedly introduced policies to encourage mergers and acquisitions between enterprises as an attempt to resolve the overcapacity crisis. Correspondingly, in Chinese capital market, the transaction number and scale of merger and acquisitions also increased year by year. As for the enterprises current generally face industry overcapacity pressure, mergers and acquisitions can effectively help enterprises to cope with the pressure of capacity? If possible, the enterprise should choose to merge and integrate the enterprises in the original industry? or to change their traditional business into other industry development? What are the factors that affect the choice of directions of mergers and acquisitions? How about the performance after the transactions? These are the problems to be discussed in this paper.

Through the literature review, we found that previous studies focused on the impact of enterprise characteristics on mergers and acquisitions with many arguments, the study is not sufficient. Fortunately, the cases of mergers and acquisitions in recent years as the research sample of our study, combining with previous work has been made, we focus on M&As of corporations in the industry with excess production capacity, to provide a supplement to the existing research results. We found that enterprises facing the pressure of more are more inclined to target at the outside of their traditional industry; at the same time, the characteristics of the enterprise will also affect the direction of the M &A. The empirical results show that the enterprise with small scale and lower degree of political are more inclined to transform into a new industry.

With regard to the performance of mergers and acquisitions, most literatures show that mergers and acquisitions can not significantly increase the value of enterprises in the long run, This research has found that as for enterprises facing with the industry overcapacity, the short-term market reaction is not significantly correlated with the M&A direction, which does impact the long-term performance of enterprises, shows that changing into other industry by mergers and acquisitions can really help enterprises deal with their overcapacity status. In addition, we found that the direction of mergers and acquisitions significantly influence the CAR reaction for corporations in non-overcapacity industry, but does not affect the CAR reaction of corporations in the industry with excess capacity; on the term of improving the operating performance, the opposite is true, which explains the contradictions existing research on M & A performance of previous to a certain extent.

Finally, we want to emphasize that, in spite of all exit and entry barriers, when the industry get stuck into overcapacity problems, mergers and acquisitions are effective means for enterprises to cope with difficulties; generally, small enterprises are more encouraged to change their business into a more promising industry, to maximize the value of itself.

Date of Award	26 Feb 2018
Original language	Chinese (Traditional)
Awarding Institution	City University of Hong Kong
Supervisor	Xueping WU (Supervisor) & Qian Sun (External Supervisor)