Budget Soft Constraints,Policy Burdens And Corporate Zombies

In recent years,the issue of overcapacity has gradually become an important issue that hinders the sound and rapid economic development in our country.Starting from 2015,China has started the five major structural reform tasks and made going-to-production capacity a top priority.Overcapacity industry zombie enterprises as the hardest hit,is the government focus on the disposal of zombie businesses.However,available information shows that the government has encountered great difficulties in the disposal of zombie enterprises.The main reason is that at this stage,measures to dispose of zombie enterprises in China are still at a groping stage.Most of the measures taken are based on the experience of other countries and no specific method has been formulated for the zombie enterprises in our country.As the iron and steel enterprise with a big influence in Northwest China,JSHX has become a typical representative of domestic zombie enterprises under the influence of overall sluggishness of the steel industry in recent years.Therefore,it is of some significance to systematically analyze the formation process of JSHX zombie and give suggestions on disposal measures.Based on the literature of zombie corporations at home and abroad,this paper starts from the soft budget constraint relationship between government and enterprises,and makes a theoretical analysis of the formation process of zombie enterprises through policy burden theory.Then select JSHX as the research object,analyze its financial indicators in recent years changes,in the revised zombie enterprise identification method to carry out a quantitative determination of zombie.Focusing on the policy burden,this paper analyzes the mechanism of budgetary soft constraints in the process of zombie from two aspects:strategic burden and social burden,and the influence of the government's preferential policies and administrative support on JSHX.Finally,the following conclusions:1.The budgetary constraint caused by the policy burden is the root cause of the zombie enterprise formation.2.Bank and other financial institutions have unshirkable responsibility for the formation of zombies.3.Proper placement of staff and maintaining social stability are the basic requirements for handling zombie businesses.The main contributions of this paper are:(1)Expand the theoretical research on the formation mechanism of zombie enterprises.The existing research mainly focuses on the disposal measures after the enterprise zombie.It lacks to analyze the formation reason of the zombie enterprise from the related theoretical point of view,and scientifically understanding the formation reason of the zombie enterprise has certain theoretical significance to the correct disposal of the zombie enterprise.(2)Rich domestic zombie enterprise case study.The existing research is mostly based on the Japanese zombie enterprises as the main research object,the country is still lack of specific case studies.(3)Combining the perspective of budget soft constraints and the policy burden theory,this paper analyzes the zombie process of JSHX,and gives some practical measures to improve the predicament of JSHX.