Research On The Correlation Between Government Subsidies And Zombie Enterprises

In order to meet the balanced demand of benign competition in the socialist market economy with Chinese characteristics,it has become one of the focuses of supply-side reform in recent years to deal with the problem of excess capacity in China rationally.Cleaning up zombie enterprises properly is the main grasp of deepening the process of supply-side and state-owned enterprise reform.In this context,in order to further speed up the cleanup and elimination of zombie enterprises,it is necessary to scientifically identify the criteria for the identification of zombie enterprises and the ideas for the cleanup.But at present,the domestic and foreign literature research on zombie enterprises mainly focuses on the macro-level research of zombie enterprises.This paper intends to explore the relationship between government subsidies and the formation of zombie enterprises,and provide ideas for the disposal of zombie enterprises.Therefore,this paper chooses A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2010 to 2017 as research samples to verify the relationship between government subsidies and zombie enterprises.Secondly,the process of marketization and the nature of property rights are taken as adjusting variables to verify the logical relationship among the process of marketization,government subsidies,the nature of property rights and Zombie enterprises.。 The following conclusions are drawn:(1)Higher government subsidies are more likely to induce the formation of zombie enterprises.(2)The process of marketization has a reverse regulatory effect on the formation of government subsidies and zombie enterprises.The better the marketization process,the weaker the role of government subsidies in promoting the formation of zombie enterprises.(3)The nature of property rights has a positive regulatory effect on the formation of government subsidies and zombie enterprises.Compared with private enterprises,government subsidies of state-owned enterprises play a stronger role in catalyzing zombie enterprises.According to the conclusion of this study,the following suggestions are put forward to clean up and dispose of zombie enterprises: Firstly,to re-examine the economic and social benefits of government subsidies and actively prevent the government subsidies from renewing the life of zombie enterprises.Secondly,we should further vigorously promote market-oriented reform and promote and deepen the reform of state-owned enterprises.Thirdly,we should prevent the "one-size-fits-all" approach to the management of zombie enterprises,and do a good job of lay-off and resettlement of workers in zombie enterprises in advance.The contribution of this paper is to empirically test the impact of government subsidies on the formation of zombie enterprises,broaden and deepen the research perspective of the formation of zombie enterprises,and provide the development direction for the clean-up and disposal of zombie enterprises in China.