Research on Vertical Integration under Overcapacity
Overcapacity is the main characteristic of many industries in transition economies. This paper focuses on the motives and impacts of vertical merger under this characteristic. Based on the extension of Hart-Tirole model,we show upstream overcapacity creates motivation for vertical merger,and the motivation is decreasing with the M&A cost. Eager bandwagon becomes possible while certain conditions are satisfied. Vertical merger may foreclose the surplus capacity out of market,and the likelihood is increasing with the downstream investment cost. At last,we check the adaptability of these suggestions to Chinese aluminum industry,and points out the influence of government intervention on the adaptability.
Overcapacity vertical integration Chinese aluminum industry
Jianbai Huang Yong Lan
Business School,Central South University,Changsha,P.R.China Business School,Central South University,Changsha,P.R.China College of Business,Hunan Agricultural U
国际会议
北京
英文
491-495
2009-10-21（万方平台首次上网日期，不代表论文的发表时间）