Research On The Detection And Exit Paths Of Zombie Firms On The Iron And Steel Industry

The structural reform of the supply side is an important strategy of China's economic reform and macroeconomic regulation."address overcapacity" is the first of five structural reform tasks,and the key measure of address overcapacity is to clear the "zombie enterprise" and reduce the " Zombie enterprises " on the occupation of social resources,eliminate backward production capacity,and to speed up the transformation and upgrading of the economy.This paper chooses steel industry as a research object,because steel industry is one of the most serious on the problem of “zombie enterprises” in China.This paper summarizes the definition and affirm methods of zombie enterprise which have existed.The next part,in terms of the characteristics of zombie enterprises in China,this paper affirm the zombie enterprises taking into account “the hematopoietic capacity” and “blood transfusion of enterprises” of the enterprises.We find that China's steel industry break out zombie enterprises on the large-scale in 2014 and 2015,zombie enterprise problem is very serious.In view of the 14 zombies found in 2015,they were compared with non-zombie enterprises in steel listed companies,including blood transfusion rate,profitability,debt capacity and development capacity of the comparative analysis.In these four aspects zombie and non-zombie enterprises differ greatly.The next chapter,we analyzes the causes of serious problems in the steel industry from the perspective of supply and demand.Overcapacity is one of the most important reasons.The last part of the article we put forward the method of getting rid of the zombie problem,including the going concern method and discontinued method.Combine company's financial situation and the strength of the company to choose a variety of exit path.Finally we analysis two cases including the Wuhan Iron and Steel merged by Baosteel and reorganization of the Haixin Company.