Institutional Background, Financing Channels And Business Survival

Wind information in 2015 done a statistics, statistics show that in the 2012-2014, net assets per share in 1 yuan of the following listed companies a total of 81, the serious shrinking assets, had lost profitability tardy however does not withdraw from the market of enterprise is vividly called "zombie" companies. So, those on the basis of the financial indicators as early as the delisting of the company why not? This is closely related to China’s industrial structure and economic objectives, policies and systems. Which plays a vital role in the delisting system background and financing channels for enterprises on the formation of "zombie" companies and the existence. The collected most of the existing theory on the relationship between delisting system background and financing channels and zombie companies ", select and excess production capacity of China Iron and steel industry and flat glass industry in the typical listed company as the research object, analysis how the role of China’s delisting system and bank credit policies and government subsidies to the verge of delisting of listed companies, resulting in the A-share market" zombie "companies to the outbreak of large-scale. Research found that the delisting system in our country is too loose, resulting in the decline in the performance of listed companies can still lurking in the A-share market; system of government subsidies and bank credit principle of ST companies provide funds to help, but such help did not play a substantive role, "zombie companies" performance did not improve. Just to escape the fate of delisting. Shall withdraw but do not withdraw the enterprise universal existence, resulting in our listed companies of the good and the bad quality, seriously disrupt the healthy operation of the stock market of our country, at the same time, interferes with the economic development of our country. In order to optimize the quality of listing Corporation in China, to help China’s securities market to achieve healthy development, at the institutional level, our country must be reformed in the delisting standards, from European mature stock market has added to scientific standards, measure the enterprise survival value of financial indicators; in the delisting procedure the gradual elimination of*ST and ST system, at the same time increase the execution the intensity of the laws and regulations and department rules:in the aspect of financing, once the enterprise approaching delisting standards, strict control of its financing channels, pay special attention to the government subsidies and bank loans, to prevent enterprises unable to improve the operating conditions in the case of the use of foreign capital for enterprises "blood transfusion", to avoid delisting, become a zombie enterprise".