Research On Scale Availability Of The Listed Construction Companies In China

Enterprises become the subject of market competition,with continuously improved market economy system of the construction industry in China. Competitions make enterprises continuously adjust the organization structure, and scales of enterprises are expanding. But we should also see that the phenomenon of "big but not strong" and lack of internationally competitive super large construction companies are ubiquity in Chinese construction enterprises especially listed construction companies (LCC). This proves that the developments of LCC do not meet the requirements of scale economy and scope economy. And there is a large gap between Chinese LCC and LCC in foreign countries. Being the important elements of construction industry in China, how to promote a healthy and orderly development of LCC has important significance to the whole construction industry even to the national economy. So, based on the system analysis of the internal and external factors which have an influence on LCC'performances, this paper has a further and painstaking study on the theory and methods about the availability of enterprise scales. And the paper uses the evaluation model combined by scale economy and scope economy to the practice of the development of LCC. The research methods include theoretical research and empirical analysis, quantitative research and qualitative research, and comparative analysis. This paper involves many related subjects including SCP theory, DEA, SFA and multiple regression analysis.The paper starts with mechanism of the internal and external factors for enterprise performance and availability of enterprise scale. Then it decides research levels of LCC'scales after clarifying the concept of LCC'scales. And it analyzes the mechanism between enterprise scale and every element by analyzing adjustment mechanism of enterprise scales and summarizing the internal and external factors for enterprise performances. Dividing the enterprise scales, study on the mechanism and judging methods of availability of the enterprises'horizontal scale and vertical scale, which all lay a theoretical foundation of this paper.Based on the analysis of development course of LCC scales, and comparative analysis the present situation of different scales of construction companies, the position of them in the whole construction industry is cleared. We analyze the external factors for LCC performances in the perspective of market structure, mainly includes market share, market concentration, entry and exit barriers. On this basis, there is an empirical study on the relationship of market structure, scale and market performances using the SCP analysis framework in order to check the Collusion Hypothesis and Efficient Structure Hypothesis.We empirical studied on the mechanism of internal factors for the performances of LCC. We analyze the scale and performance statuses of all listed companies on construction plate in Shanghai and Shenzhen stock market, and find the gaps and problems existing by comparative studies on Chinese and foreign. Then we analyze the factors impacted on different performances of LCC, price behavior and corporate governance structure, especially the gaps on different level of performances between different corporate governance structures. In this paper, we have an empirical analysis on scales of LCC, internal factors and enterprises'performances, and build three regression models. The first model is between corporate governance structure and scales of enterprises, the second one is between corporate governance structure and performances of enterprises, and the third one is between scales of enterprises and performances of enterprises.There is an evaluation on the availability of LCC scales. We build an evaluation system and definite division standard of the availability of LCC scales. Then technical efficiency, scale economy, scope economy, and total factor productivity growth are calculated. Comparison and analysis of evaluation-index of different types of LCC are carried out. Meanwhile, grades of scale availability evaluating LCC are determined by the calculating results and dividing standards. Development strategies on scale availability of LCC are put forward. Based on the empirical analysis and valuating results of LCC, we put forward the policies and suggestions of availability on LCC'scales which separately in the view of market structure, corporate governance structure, firm size mode and firm organization structure.This paper studies on the theory and method of availability on LCC scales, which to some extend can promote development of related theory on enterprises scales. This paper has important values in further development of construction economy and management theory, and promoting the competitiveness of LCC, and healthy and fast development of LCC, and realizing scale economy and scope economy in the real sense.