An Empirical Study of the Impact of the “Cutting Overcapacity†Policy on the Performance of Steel Industry

Abstract

The article takes the steel industry as the research object to reveal the influence of the implementation of the “cut overcapacity†policy on the performance of listed companies. Taking this as a starting point, the author will select a sample of the listed companies in this industry from 2015 to 2016 and divides the sample interval into two stages: "cut overcapacity" with mild measures and "cut overcapacity" with strong measures according to changes in the implementation of "cut overcapacity" policies. Meanwhile, it will further distinguish the nature of ownership and compare and analyze the impact of the “cut overcapacity†policy on the performance of both stateowned and private enterprises. The study found that there is a significant positive correlation between corporate performance and the implementation of the “cut over-capacity†policy. Moreover, the further implementation of the “cut overcapacity†policy has a far greater effect on the promotion of state-owned enterprises than on the private ones. State-owned enterprises have become the biggest beneficiaries in the reform of “cut overcapacityâ€.