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7515Based on the micro data of China’s iron and steel enterprises, this paper firstly measures capacity utilization rate from 1998 to 2007, then analyzes the evolution trend of the capacity utilization rate, the differences of the nature of enterprises and their influences on business efficiency, and finally studies the scale factors of enterprises’ nature differences. The research finds that the capacity utilization situation is always an important factor affecting the business efficiency of China’s iron and steel enterprises, which is particularly prominent in the state-owned iron and steel enterprises: firstly, capacity utilization rates and profit rates in China’s iron and steel enterprises have the same evolution trends and the similar nature differences, that is to say, state-owned enterprises’ capacity utilization rates and profit rates are significantly lower than those of non-state-owned enterprises such as collective, private and foreign enterprises; secondly, the capacity utilization rate is the dominant factor affecting profit rates of China’s iron and steel enterprises, whose difference can explain the differences in profit rates between state-owned and non-state-owned iron and steel enterprises to a great extent; specifically, about 10% of the profit rate differences between state-owned and collective enterprises, about 30% of the profit rate differences between state-owned and private enterprises and about 7% of the profit rate differences between state-owned and foreign enterprises can be explained by the differences in capacity utilization rate. Therefore, the future reform of state-owned steel enterprises should pay more attention to the prevention and governance of overcapacity. To narrow the gap of capacity utilization rates between state-owned and non-state-owned iron and steel enterprises vigorously is the key to enhance the business efficiency of state-owned iron and steel enterprises; thirdly, through further division of enterprises’ scale types, the nature differences in capacity utilization rates of China’s iron and steel enterprises are mainly in small and medium enterprises, especially small enterprises. Due to the large scale of state-owned enterprises, if the scale factor is not taken into consideration, the gap of the capacity utilization rates between state-owned and non-state-owned enterprises will further expand by about 15%. Therefore, in order to control the overcapacity of China’s iron and steel enterprises, we should not only consider the ownership of enterprises, but also distinguish the scale types of enterprises, and at the same time adhere to the development path of enterprise reform about ownership and large scale. We should start from the small and medium enterprises and focus on their ownership reform, namely our state-owned iron and steel enterprises should still continue to adhere to the reform ideas of " grasping the big and giving up the small”.
/ Journals / Journal of Shanghai University of Finance and Economics
Journal of Shanghai University of Finance and Economics
LiuYuanchun, Editor-in-Chief
ZhengChunrong, Vice Executive Editor-in-Chief
GuoChanglin YanJinqiang WangWenbin WuWenfang, Vice Editor-in-Chief
Capacity Utilization, Enterprise Nature and Operation Benefits: Empirical Study Based on Iron and Steel Industry
Journal of Shanghai University of Finance and Economics Vol. 19, Issue 06, pp. 31 - 45 (2017) DOI:10.16538/j.cnki.jsufe.2017.06.003
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Cite this article
Ma Hongqi. Capacity Utilization, Enterprise Nature and Operation Benefits: Empirical Study Based on Iron and Steel Industry[J]. Journal of Shanghai University of Finance and Economics, 2017, 19(6): 31–45.
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