Study on Merger and Acquisition Performance in Industries with Overcapacity-Based on the Comparative Analysis before and after the Financial Crisis
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In the study results of the stage before the financial crisis, many conclusions tend to believe that China lacks the conditions for market-oriented merger and acquisition, and the merger and acquisition performance in industries with overcapacity is poor. The explosion of the international financial crisis in 2008 profoundly changed the implementation of the international financial operation and regulation system and global economic policies and also destructively promoted the deep adjustment of many economic systems and industrial structures. Will the merger and acquisition performance in industries with overcapacity under the new background be different? The author has studied 10 industries with long-term overcapacity and conducted empirical study on the merger and acquisition performances before and after the crisis. The results show that compared with that before the crisis, the merger and acquisition performance in industries with overcapacity has improved significantly after the crisis, but the effect is not significant in the long run. At the same time, the merger and acquisition performance in industries with overcapacity in heavy industry has no significant change before and after the crisis, but that in industries with overcapacity in light industry has significantly improved after the crisis. The conclusions above are of reference significance for the target development of relevant policies and strategies for supply-side reform.
Overcapacity, Merger and Acquisition Performance, Heavy Industry, Light Industry