Research On The Behavior Model And Economic Consequences Of Government Intervention In Enterprise Financial Distress

The reform of state-owned enterprises plays the leading role of state-owned enterprises,which is based on China's national conditions.As the backbone of China's economic development,state-owned enterprises currently have some problems such as overcapacity and backward management.The government plays a big role in the process of solving the problem.Due to the goal of maintaining and increasing the value of state-owned capital and the consideration of the economic and social interests of governments at all levels,the government will adopt a series of means to intervene.This paper takes Shanxi Sanwei Group Co.,Ltd.as an example to study the behavioral patterns and economic consequences of government intervention.Shanxi Sanwei Group Co.,Ltd.has been warned of delisting risk since 2015.As a local state-owned enterprise,its sustainable management issues and the qualifications of listed companies are highly concerned by the Shanxi Provincial Government and the Shanxi Provincial State-owned Assets Supervision and Administration Commission.At the beginning of 2017,the Shanxi Provincial Government made a systematic arrangement for the three-dimensional shell-protection work in Shanxi.In the end,Shanxi Sanwei Group Co.,Ltd.'s shell-keeping was successful,and the successful restructuring of the transportation industry made the transportation industry in Shanxi get a platform for listing.The first chapter mainly analyzes the research background and significance,and introduces the research methods and contributions of this paper.Under the dual background of state-owned enterprise reform and supply-side structural reform,this paper has a good practical significance for the study of government behavior.Meanwhile it enriches the case study of government intervention behavior patterns and topics related to economic consequences,providing more reference value.The second chapter sorts out and summarizes the relevant documents of financial distress and government intervention,and reads and collates relevant documents on financial distress,government intervention,government subsidies and asset restructuring.Among them,the research on financial distress is more in-depth at home and abroad,and the conclusions are relatively uniform.For the relative concentration of government intervention-related content research and economic consequences and motivation analysis,there is less generalization and summary of behavior patterns.The third chapter first introduces some systems related to the research topic of this paper and the changes in recent years,and conducts a brief analysis.In addition to the government subsidies and special treatment systems,it also introduces the government-related financial system and the official promotion assessment system.Based on this,this paper also theoretically describes the motives,means and economic consequences of government intervention in business operations,which lays a theoretical foundation for the case analysis in the following.The fourth chapter is the case background,which elaborates the case selection of this paper,and introduces the basic situation of ST's business,equity and financial status.It elaborates on the situation of Shanxi Sanwei Group Co.,Ltd.'s financial distress and the major transactions and changes of Shanxi Sanwei Group Co.,Ltd.in recent years.The case analysis part of Chapter 5 mainly introduces and analyzes the direct and indirect means of government intervention,and studies the basic situation and direct economic consequences of the four business involved.Finally,this part researches the economic consequences and market reactions of government intervention.The sixth chapter includes conclusions,recommendations and prospects.The conclusion part is about the behavioral patterns and economic consequences of government intervention after the whole case study;the recommendations are mainly based on the case-to-government intervention to the enterprise and the company's own response to financial distress;the prospective part summarizes the research shortcomings and proposes future directions for revision.Based on the case study of this paper,the government's intervention to Shanxi Sanwei Group Co.,Ltd.mainly adopts the direct means— government subsidy to help enterprises turn losses into profits,which smoothly “cap the hat” and successfully protect the shell;the indirect means — multiple asset restructuring helps the enterprise to transform successfully.And by right of Shanxi Sanwei Group Co.,Ltd.,the listed company,the expressway industry in Shanxi Province has been successfully established a listing platform,which will gradually achieve the goal of “backdoor listing”.