Study On Local Government Actions In Governance Of "Zombie Enterprise"

Zombie enterprises rely on bank loans and government subsidies to survive,devouring a large number of resources but do not producing benefits,seriously affecting the healthy and stable development of the economy.The research goal of this paper is to explore the actions of local government in the governance of zombie enterprises.The point is to find out the relationship between zombie enterprises,behavior of local government and risk-taking to study the impact of risk-taking of zombie enterprises on their performance and the impact of local government's behavior on zombie enterprises' risk-taking ability.Providing targeted recommendations on the role local governments should play in zombie enterprise governance.In this paper taking the strategy of local government should take in the zombie enterprise management as the research content,making full use of three major major research methods as literature research,case analysis and empirical analysis.First of all this paper expounds the concepts of local government,government behavior and zombie enterprises.Then analyzed three theories as operating value theory,social policy theory and benefit-sharing theory.Both of these paved the way for this study.This paper takes Linyi Changlin Group and Huludao Nonferrous Metal Company as examples to analyze the current situation of local government behavior in the "zombie enterprise" governance.Through the case,the paper analyzes the role of local government in zombie enterprise governance and the measures taken.In the process of zombie enterprise governance,instead of blind invention or passive intervention,by the form of stablishing internal channels to solve the difficulties encountered in the process of bankruptcy basing on a full understanding of the enterprise after after mastering the lifeblood of enterprise development.By reducing or waiving taxes and waiving the obligation to impose fines on late fees,we can truly benefit zombie enterprises.And through the negative cases to point out the harm local government did to the enterprise in zombie enterprises governance process due to inactions and chaos actions.Finally,through the use of the three major research methods and positive and negative case analysis,this paper concludes that local government should play acoordinator,night watchman,rule maker and pooler.To fully liberate the residual industrial value of zombie enterprises,local governments should take a proactive approach in the governance of zombie enterprises,take the initiative and use the combination of power and decentralization to help zombie enterprises get out of troubles.