Government Regulation And Zombie Enterprises

With China's economic development entering a new normal,economic growth slowed down,downward pressure increased and the industry environment deteriorated.In view of the main contradictions and problems existing in the new normal economy of our country,the Party Central Committee puts forward the structural reform of the supply side,which is regarded as an important strategic measure to adapt to and lead the new normal e conomic development.The Central Economic Work Conference in 2015 clearly put forward that actively and steadily dealing with zombie enterprises is the most important task to achieve the "capacity removal" task,and is to resolve the "bullnose" of excess capacity.At the National Financial Conference in July 2017,Xi Jinping put forward that reducing the leverage of state-owned enterprises should be the focus of deepening the structural reform of supply side,and emphasized again the importance of dealing with zombie enterprises.Therefore,clearing up the zombie enterprises is an important part of pushing forward the structural reform of the supply side.The key to properly dispose of the zombie enterprises is to clarify the causes and mechanisms of the zombie enterprises.In our country,SASASAC is the actual controller of state-owned enterprises,and bears the responsibility of maintaining and increasing the value of state-owned enterprises.However,it is hard to conceal the fact that although the scale of state-owned assets has been increasing since the establishment of SASASAC,the contradiction of excess capacity of state-owned enterprises in China has become increasingly prominent,forming a large number of "zombie enterprises",which seriously hampers the development of China's economy.This situation prompts us to think: does the establishment of SASASAC increase the risk of zombie enterprises? What is the underlying mechanism? While SASAC promotes the formation of zombie enterprises,is there another positive side?In order to solve the above problems,this paper uses the multi-period double difference(DID)and provincial panel data of Shanghai and Shenzhen A-share listed companies from 2000 to 2011,based on the establishment of provincial SASASAC this exogenous event on the formation of government control on zombie enterprises in-depth study.The empirical results show that after the establishment of SASASAC,the proportion of zombie enterprises in state-owned enterprises has increased significantly.The reason is that the establishment of SASASAC strengthens the relationship between government and enterprises.Local governments intervene in local state-owned enterprises in order to achieve performance appraisal,which leads to over-investment of state-owned enterprises and induces them to gradually evolve into zombie enterprises.On the other hand,the establishment of SASASAC increases the degree of resource misplacement of state-owned enterprises,which leads to the loss of profitability of state-owned enterprises eventually.Become a zombie business.Furthermore,considering the heterogeneity of enterprises,the longer the establishment of enterprises,the worse the internal control of enterprises,and the lower the level of non-high-tech industries and marketization,the more significant the impact of SASASAC on the formation of zombie enterprises.Considering the heterogeneity of SASASAC directors,when the full-time SASASAC directors and SASASAC directors are under 59 years old,the establishment of SASASAC has a more significant impact on the formation of zombie enterprises.This paper also further investigates the economic consequences of the establishment of SASASAC leading to an increase in the proportion of zombie enterprises.The results show that although the establishment of SASASAC increases the risk of the formation of local zombie enterprises,the establishment of SASAC also promotes local economic growth and improves local employment rate.On the other hand,for the director of SASAC,the growth of local zombie enterprises can also be significant.In order to promote their promotion and reduce their probability of being prosecuted,this has also led to the local government and SASAC directors have the motivation to maintain the zombie enterprise "stiff but not dead" situation.Finally,this paper also carries out relevant robustness tests,including: redefining the zombie enterprise variables;redefining the experimental group;researching samples are limited to companies listed before the period of the research samples,and the test results are in line with expectations,verifying the accuracy of the research conclusions.This paper studies the relationship between the establishment of SASASAC and the formation of zombie enterprises,which is divided into six parts: The first part is the introduction,which mainly introduces the background and significance of this study,writing ideas and research methods,research content and basic framework,as well as the innovation and shortcomings of this paper;the second part is the literature review,this paper respectively identifies the criteria,causes and treatment of zombie enterprises.The third part is the theoretical overview of government regulation and zombie enterprises,introducing the definition and measurement methods of zombie enterprises,and explaining the relevant theoretical basis;the fourth part is theoretical analysis and research falsehood.After sorting out the internal relationship between the establishment of SASASAC and the formation of state-owned zombie enterprises,this paper puts forward research hypothesis,establishes test model,and defines sample selection and data sources.The fifth part is the analysis of empirical results.This part analyses the impact of the establishment of SASASAC on the formation of zombie enterprises,and further studies the impact path,the heterogeneity of enterprises and the heterogeneity of SASASAC directors.The last part is the conclusion,suggestion,insufficiency and Prospect of the study.