Formation And Governance Of Zombie Enterprises In The Context Of Restructuring ——Case Analysis On Two Restructurings Of Pangang Group Vanadium Titanium And Resources Co.,ltd

In China’s supply-side reform,overcapacity reduction is the primary task,while zombie corporate governance is an important task under the target of overcapacity reduction.Zombie enterprises destroy the ecological environment of normal enterprises and cause a bad impact on the whole economy.Effective zombie enterprise governance is a major problem at present.This paper takes Pangang Group Vanadium Titanium and Resources Co.,Ltd as an example to conduct indepth research and analysis on the formation and governance of zombie enterprises.Caused by the lack of long-term inefficient assets operation,industrial innovation,lack of resources and lack of reasonable configuration,there are a lot of zombie companies in our country.This kind of enterprise takes up valuable credit resources,encroaches the growth of normal business space,causes the unbalanced development,some industry overcapacity,which cause serious damage to the healthy development of the economy as a whole,and take the risk of a great social problem.At present,China’s economic structure has entered a critical transformation period.In this critical process,the zombie enterprise to solve the problem becomes the top priority.How to reduce the formation of zombie enterprises and how to governance zombie enterprise effectively is the current problem.Pangang Group Vanadium Titanium and Resources Co.,Ltd is a company that has been restructured twice in recent years,and its restructuring process is also the process of its zombie enterprise formation and governance.After two years of negative net profit,Pangang Group Vanadium Titanium and Resources Co.,Ltd underwent its first restructuring in 2011,shifting from steel to iron ore mining and related operations.After the restructuring,the performance is weak,three consecutive years of negative net profit,into the zombie enterprise predicament.After that,the second restructuring was carried out in 2016,in which the iron ore business was spun off and the main business was shifted to vanadium and titanium products,with the intention of zombie corporate governance.However,it failed to improve its operating capacity substantially and its asset scale was significantly reduced,making it difficult to see good future performance.This paper takes the two reorganizations of Pangang Group Vanadium Titanium and Resources Co.,Ltd as an example to conduct in-depth research and analysis on the formation and governance of zombie enterprises,hoping to provide help to solve the above problems.The full text is divided into six chapters.The train of thought is as follows.The first chapter is an introduction,which analyzes the research background and significance,summarizes the research content and draws the content framework,explains the research methods involved in this paper,and summarizes the innovation and contribution of this paper.The second chapter is a literature review,which sorts out the literature related to the identification,influence,governance,concept of asset reorganization and performance evaluation of zombie enterprisesThe third chapter is a theoretical overview,which summarizes the definition methods of zombie enterprises,reviews the changes of China’s asset restructuring system,and provides theoretical support for the identification of zombie enterprises and the analysis of asset restructuring.The fourth chapter is the case background.After a brief introduction of Pangang Group Vanadium Titanium and Resources Co.,Ltd,it reviews the two reorganizations of Pangang Group Vanadium Titanium and Resources Co.,Ltd and adopts the modified FN-CHK model to identify Pangang Group Vanadium Titanium and Resources Co.,Ltd as a zombie enterprise.Chapter five analyzes the formation and governance of zombie enterprises under the background of Pangang Group Vanadium Titanium and Resources Co.,Ltd ’s two reorganizations,and analyzes the causes and results of the reorganizations.By comprehensive comparison,the existing problems in the formation and governance of Pangang Group Vanadium Titanium and Resources Co.,Ltd zombie enterprises are clarified.Chapter six is the research conclusion,suggestion and prospect.This paper summarizes the analysis results of the formation and governance of Pangang Group Vanadium Titanium and Resources Co.,Ltd zombie enterprises,and puts forward some Suggestions.The innovation of this paper: first,there is no conclusion on the determination method of zombie enterprises at present.This paper uses the modified FN-CHK model to make qualitative determination of Pangang Group Vanadium Titanium and Resources Co.,Ltd zombie enterprises.Secondly,the paper studies the transregional reorganization and analyzes the existing problems after the trans-regional reorganization and its adverse effects on the corporate governance.Third,the two reorganizations of Pangang Group Vanadium Titanium and Resources Co.,Ltd were studied and compared,and the formation and governance of zombie enterprises were discussed in the form of case analysis,hoping to provide reference for other enterprises.This paper includes shortcomings: first,there is a dispute about the zombie enterprise’s judgment,this paper does not study to put forward a universal judgment standard.Secondly,the author’s ability is limited,and the research on the formation and governance of zombie enterprises may not reach enough depth.Third,this paper mainly focuses on the case of Pangang Group Vanadium Titanium and Resources Co.,Ltd,and the conclusions drawn are not widely applicable to all enterprises,so more cases are needed to supplement the conclusions.