Conclusions, Suggestions and Prospects

Abstract

Corporate M&A and corporate consolidation are the paths for external growth of enterprises and ways of allocation of social and economic stock resources. Past studies on M&A and corporate consolidation are theoretically based on the models of mainstream economics and follow the full market hypothesis. In the aspect of empirical studies, the analysis of M&A effects is mostly limited to the micro level. Most studies on M&A from the perspective of industrial market structure take industry and market structure as exogenous variables to analyze their impact on the behavior and occasion of M&A. Under the condition of transitional economy, the government is an important agent in economic development. Government behaviors, especially government competitions, are institutional variables that affect enterprise behaviors and corporate consolidation. Based on this theory and the empirical facts, we have in this book innovatively constructed a theoretical analysis framework for corporate consolidation through M&A under the condition of government competition during the transition period. Based on the perspective of local government competition, starting from the essential problems of China’s enterprise M&A during the transition period, and taking “the existence of M&A waves—the occurrence mechanism of M&A under government competition—the process of corporate consolidation under government competition—the macro and micro effects of M&A” as the main line, this chapter reveals the mechanism and effects of enterprise M&A on the evolution of industrial economic structure and regional economic structure under the paradigm of government competition. At the same time, taking “the motivations for government competition—conducts of government competition—effects of government competition” as the hidden line, the path of government competition and its impact mechanism are investigated. Relevant analysis of government competition is embodied in the logical framework of M&A and corporate consolidation.