Research On The Governance Effect Of Government Subsidy On "Zombie Enterprises"

At this stage,how to solve the problem of zombie enterprises has become the focus of the government.At present,China's zombie enterprises in different states mainly adopt the methods of fine screening,classification guidance and differential treatment.Through observation,it is found that after the enterprise has evolved into a zombie enterprise,most of the zombie enterprises still enjoy the financial subsidies of various natures provided by the government.In response to this objective economic phenomenon,it can not help but lead people to think about what kind of economic effect does the government provide financial subsidies to zombie enterprises? Is it necessary to continue to provide government subsidies to zombie companies? Which zombie companies do you need to provide? In view of this,this article focuses on the economic effects of the government's continued financial subsidies for a large number of “stiff and dead” zombie companies.Considering that the production capacity of zombie enterprises has become a stubborn disease that hinders China's supply-side structural reforms and resolves the problem of excess capacity in China,it focuses on the effect of government subsidies on the capacity utilization of zombie enterprises.From the perspective of micro-capacity utilization,it aims to examine the economic effect of the government providing financial subsidies to zombie enterprises.This paper uses the zombie enterprises identified in 2007-2016 as a research sample to empirically test the effect of government subsidies on the capacity utilization rate of zombie enterprises.At the same time,the differences in the effects of government subsidies are further examined from the perspectives of the nature of corporate property rights,government intervention,and regulatory environment,and the intrinsic mechanism and economic consequences of the relationship between government subsidies and capacity utilization are examined in depth.The empirical test results show that government subsidies have a negative effect on the capacity utilization rate of zombie enterprises.Compared with zombie enterprises that have not received government subsidies,the capacity utilization rate of assisted zombie enterprises has decreased more significantly.The results of robustness tests and endogenous tests show that this conclusion is robust.Further analysis found that under different property rights,government intervention,and regulatory environment,the effects of government subsidies are not the same.Compared with private and foreign zombie enterprises,the negative effect of government subsidies on capacity utilization is stronger in state-owned zombie enterprises,that is,the negative effects of government subsidies have weakened in private zombie enterprises and foreign zombie enterprises,and even presented positive Compared with zombie enterprises with low government intervention and poor regulatory environment,the negative impact of government subsidies and capacity utilization rate is weakened by government intervention and strong external regulatory environment,indicating strong government macro intervention and good The external regulatory environment helps to reduce the negative effects of government subsidies.Finally,the paper also finds that government subsidies distorted the investment behavior of assisted zombie companies,intensified their investment expenditures,reduced business performance,and provided a reasonable explanation for the negative relationship between government subsidies and capacity utilization of zombie enterprises.This paper starts from the late stage of zombie enterprise formation,studies the impact of macro-government subsidy factors on the economic effects of micro-zombie enterprises,provides a new research perspective,and enriches the literature on zombie enterprises,government subsidies,and capacity utilization.At the same time,the research closely follows the hot topics such as “Zombie Enterprise” and “Three Goes,One Drop,One Supplement” in China.The research conclusion not only answers the thorny issue of whether the government should continue to provide government subsidies to zombie enterprises,but also for the government.It provides a certain theoretical reference for focusing on which zombie enterprises are supported and how to exert the positive policy effects of government subsidies.It is of great practical significance for China to better formulate fiscal policies related to zombie enterprises and classify and manage zombie enterprises.