Research On The Avail Of Chinese Market For Corporate Control To Industry Structure Adjustment

Along with the rapid growing of Chinese economy over years, especially after entering the WTO, China has achieved the stage when star up and support economy expand is started up and supported by industry structure adjustment. And merger and acquisition operates on the industry structure adjustment. Continual M&A activities indicate that there is a new market—the market for corporate control. The way of solving overcapacity is not controlling economy scale by restrict production and investment, but transferring the new investment and inherent investing ability to promising industries and corporations. Therefore, it is important to study the avail of the market for corporate control to adjust the industry structure.The market for corporate control in this article is the listed company market for corporate control where the biggest shareholder is transferred. In this article, I analyze the avail of the market for corporate control to adjust the industry structure by theory research and demonstration research. Firstly, analyze the present situation of the market for corporate control in China. Secondly, demonstrate the transferring situation of three industries by building models. At last, to place emphasis on the avail of the market for corporate control to adjust the industry structure. In this part, appraise the efficiency the Chinese market for corporate control using the industry concentration. Then on the basis of listed company classification guide, I classify the industries where M&A has happened between 1999 and 2004 according to time series and get their own qualities of various M&A types. And classify the industries according to industry life cycle theory and analyze the effect to adjust the industry structure in hope of improving the Chinese market for corporate control and adjusting the industry structure.