Research On The Causes And Governance Of Zombie Enterprises In Competitive Industries

Since the Economic Reform and opening up,the problem of excess manufacturing capacity has been perplexing China's economy,especially at present when China's economy is changing from high-speed growth to high-quality development.Excess manufacturing capacity has become an important obstacle to high-quality economic development,and removing excess manufacturing capacity has become one of the problems that need to be solved urgently.The key to solve the problem lies in zombie enterprises.To deal with zombie enterprises,first of all,we need to clarify the causes of zombie enterprises.Therefore,the article takes zombie enterprises as the research object,analyzes the causes and governance of zombie enterprises,focuses on the analysis of the causes of zombie enterprises,and finally puts forward suggestions on the governance of zombie enterprises according to different subjects.Zombie enterprises mainly refer to enterprises that lack the ability of self-development and development ability and should withdraw from the market in an ideal market,but it can still rely on non market factors(such as government subsidies,bank loans,etc.)"blood transfusion" and cannot withdraw from the market normally.Zombie enterprises should have exited in the ideal market,but the reality is that zombie enterprises are rigid and survive in the market,which shows that the invisible hand behind them supports and protects zombie enterprises.Therefore,the paper focuses on the impact of government subsidies and bank credit subsidies on zombie enterprises.The zombie enterprises in China's administrative monopoly industries,such as tap water,oil,railways,and aviation,are related to the development of other industries and even the entire society.Therefore,even if enterprises in such industries fall into the zombie dilemma,the government and banks will still continue to support it,so the article does not consider zombie enterprises in such industries,and only conducts theoretical analysis and empirical tests on the formation and governance of zombie enterprises in competitive industries.The article mainly selects the data of A-share listed companies in China's competitive industry from 2008 to 2017 as a research sample,and analyzes the overall characteristics of zombie enterprises in the competitive industry,the distribution characteristics of ownership,and the government subsidies and bank credit subsidies obtained;Bank credit subsidies and the impact of different levels of government subsidies on the formation of zombie companies.The empirical results show that: zombie enterprises receive higher government subsidies than normal enterprises;the formation of zombie enterprises is positively related to bank credit subsidies;moderate government subsidies will inhibit the formation of risks of zombie enterprises,but high-value government subsidies will Increase the risk of zombie companies.The final article is based on different stakeholders(governments,bank,enterprises)to propose governance zombie companies.