Research On The Influence Of Government Subsidy Of Zombie Enterprise On The Sustainable Development Of Enterprise

In 2015,Premier Li Keqiang repeatedly proposed to speed up the merger and reorganization or exiting of "zombie enterprises".In December 2016,the Central Economic Working Conference determined that cutting overcapacity is the top task of China's five structural reforms.Since the reform and opening,China's economy has experienced sustained and rapid growth and has become one of the middle-income countries.But accompanied with the decline of China' s demographic dividend and the adjustment of the international economic structure,China's economic development has entered the "New Normal".In the past few decades,some state-owned enterprises have been blindly seeking for scaling and comprehensive business.With the problem of overcapacity and structural distortion,these state-owned enterprises have become "zombie enterprises" which occupied huge numbers of economic resource,and seriously dragged down China's economic restructuring.To deepen China's supply-side reform,it is necessary to push forward capacity reduction,de-stocking,deleveraging,cost reduction and improving underdeveloped areas,and the dispose of"zombie enterprises" is the key to the question,which is the key to capacity reduction.This article mainly studies the causes of the "zombie enterprises" and the influence of government subsidies on zombie enterprises' sustainable development,then explore how to realize the classified management of zombie enterprises.It is unreasonable to explore how to make targeted management of zombie enterprises of zombie enterprises in a "one size fits all"approach."One-size-fits-all" will lead to a worse situation.This article mainly adopts the literature research method and empirical research method.The literature research lays a theoretical foundation,and the theory of rent-seeking behavior,budget soft constraints and other theories provide the research basis for the hypothesis.The empirical analysis further validates the research hypothesis.The study found that:First,“zombie companies" receive higher government subsidies but have lower sustainable development capacity.Second,government subsidies have no impact on zombie enterprises' sustainable development.Finally,after introducing a regulatory variable of R&D input,in those zombie companies with higher investment,government subsidies can have a positive impact on their sustainable development.