The Impact Of Government Subsidies On The Performance Of Zombie Enterprises

In recent years,the overall development of China's economy has entered a new stage of gear reduction and industrial structure upgrading.At present,China's listed companies,as the more gifted enterprises in China,are facing the opportunity to upgrade the industrial structure,but at the same time,they are facing many problems and challenges such as excess capacity,serious business losses and high leverage.Government subsidy is one of the important tools of government financial policy.According to relevant data,more and more listed companies in China have received government subsidy in recent years.Government subsidies are intended to help companies recover,maintain social stability and promote economic growth,but they can also keep the defunct members of listed companies alive,making them one of the drivers of corporate zombification.This negative effect of government subsidy has aroused wide concern of people from all walks of life.The relationship between government subsidy and zombie enterprises is not only one of the focal issues in current supply-side structural reform research,but also one of the hot issues in academic research.The existence of zombie enterprises seriously hinders the improvement of national economic efficiency.In-depth research on the causes of the formation of zombie enterprises will not only help effectively clear zombie enterprises,but also help prevent the formation of new zombie enterprises.This has a bearing on the success or failure of China's supply-side structural reform,and is of great significance to reducing overcapacity and promoting the transformation and upgrading of industrial structure.This paper studies the relationship between government subsidies and the formation of zombie enterprises by using relevant data from China's a-share listed companies,and explores how to classify zombie enterprises in A targeted manner.This paper,based on rent-seeking theory,principal-agent theory and budget soft constraint theory,draws on the existing research results of government subsidies and zombie enterprises,and theoretically analyzes the effect mechanism of government subsidies on the formation of zombie enterprises.Firstly,based on the fn-chk zombie enterprise identification standard,a comprehensive zombie enterprise identification standard is obtained to identify zombie enterprises in the sample of a-share listed companies.Secondly,through the construction of OLS model,a large sample regression was conducted on the corporate investment of non-financial a-share listed companies from 2009 to 2018,so as to distinguish the main types of constraints faced by enterprises.Finally,by constructing the Logistic measurement model and taking the ashare listed companies from 2009 to 2018 as the research samples,empirical analysis was made on the heterogeneous impact of government subsidies on the formation of zombie enterprises under the circumstances of different constraint types,different constraint types in different regions and environments,and different constraint types of property rights.Through analysis,the main conclusions of this paper are four :(1)government subsidies promote the formation of zombie enterprises;(2)after distinguishing the constraint types of enterprises,the study found that government subsidies increased the possibility of investment opportunity constraint enterprises to become zombie enterprises,but had no such effect on financing constraint enterprises;(3)after the account of the differences of regional environment,further found that compared with regional economic environment better in central,northeast and eastern regions,government subsidies will improve areas with poor economic environment in the western region the possibility of enterprises become a zombie,and the impact on investment opportunities in restricting enterprise has stronger economic significance.(4)after further considering the difference in property rights,it is found that government subsidies will increase the possibility of investment opportunity constraint enterprises in both state-owned enterprises and non-state-owned enterprises to become zombie enterprises,and this effect has a stronger economic significance in state-owned enterprises.Based on the above research conclusions,this paper puts forward Suggestions on classified disposal of zombie enterprises in China's a-share listed companies under the realistic background of current supply-side structural reform.This paper puts forward specific countermeasures and Suggestions for the governance of zombie enterprises in china from four aspects: improving the efficiency of government subsidies,reducing the mismatch rate between government subsidies and enterprises,deepening the regional market-oriented reform,and improving the disclosure degree of relevant information between governments and enterprises.The possible innovations of this paper are as follows :(1)this paper comprehensively considers the differences in enterprise constraint types,regional economic development environment and property right nature,and deeply analyzes the heterogeneous impact of government subsidies on the formation of zombie enterprises;(2)this paper studies the relationship between government subsidies and the formation of zombie enterprises,further expands the research on the economic effect of government subsidies,and deepens the understanding of government subsidies;(3)based on the identification standard of fn-chk,fn-chk method is combined with the method of the state council and the actual profit method to form a comprehensive method for identifying zombie enterprises while introducing the "national development institute standard of NPC".