| Currently,China has entered into a new stage of economic development.The growth of international trade slows down and the financial market volatility keeps aggravating,which cause severe impacts to China’s economy,and increase the economic downward pressure.The promotion of supply-side reform is an inevitable requirement to adapt to the new normal of China’s economic development.It is also an important step to achieve sustainable and healthy development of economy.Along with the transformation and upgrading of industries,current tasks of government work include adjustment of industrial structure,promotion of supply-side reform,resolution of excess production capacity,and acceleration of the pace to dispose zombie enterprises.Zombie enterprise is an enterprise with low profitability and stuck in the financial distress,it would be driven out of the market under the normal competitive condition but is allowed to survive with help of external funding from the government and financial institutions.The global financial crisis in 2008 has led to the decline of world economy,China’s economy has also been influenced.After the financial crisis,the foreign market slump and decrease in domestic demands lead to the excess production capacity of infrastructural industries,such as steel,coal and cement.Under these circumstances,the operation of enterprises have been negatively inluenced,amount of firms were stuck in the financial distress.Some enterprises with excessive production capacity would be eliminated by the market but is allowed to survive with help of external funding from the government and financial institutions,and deteriorate into zombie enterprises gradually.With the increase of economic downward pressure,the problems of zombie enterprises have been stood out.It has reached the social consensus that zombie enterprises have caused the waste of social resources,the aggravation of excessive production capacity,the hindrance of industrial development,the deterioration of credit environment,and the inducement of systematic risk,and also impeded the economic development and social stability.After 2015,China’s State Council meetings stressed the importance of deepening reform,accelerating the disposal of zombie enterprises,improving the development quality and effectiveness of firms,optimizing the allocation of social resources,resolving the excessive production capacity,and promoting the healthy development of economy.The researches of zombie enterprises mainly focus on the theoretical exploration of the definition,identification criteria,causes of formation,and the disposal methods of zombie enterprises.There is almost no research on the degree of zombification by quantitative approach from the perspective of zombie enterprises.According to the guidance of classified disposal of zombie firms of government,the researches of the disposal of zombie enterprises concentrate on the theoretical analysis,few studies explore the quantitative classification criteria,and the combination of classification criteria and classified disposal methods,based on the actual data and information of zombie enterprises.Firstly,this study summarizes and evaluates the domestic and foreign literatures of the identification criteria,causes of formation and measures of zombie enterprises.Referring to the credit subsidy criteria of foreign researches,the government grants factor and the importance of the net profit and debt ratio of domestic studies,this paper proposes a two-step identification method.After deducting the credit subsidy and government grants,the sum of the actual net profits of three consecutive years is negative,together with another criterion that the debt ratio of firm is higher than the average industrial level,then the firm can be identified as zombie enterprise.Then,this paper identifies the zombie observations of Chinese A-share listed companies based on the identification criteria.Secondly,this study screens ratios from the aspects of fundamental financial ratios,corporate governance ratios,and external funding dependence ratios,based on the literature review,empirical tests and analysis of core characteristics of zombie firms.The information entropy method has been adopted to evaluate the zombie index.This research divides the research period of this paper according to the variation of macroeconomic environment,then establishes and illustrates the zombie index which include fundamental financial ratios,corporate gorvenance ratios and external funding dependence ratios,by the information entropy method for each period.Finally,this study combines the zombie index factor with the zombie duration factor to measure the comprehensive degree of zombification,and classifies the zombie enterprises into three categories,which include mild zombification,moderate zombification,and severe zombification.Based on the data characteristics of each category,this study proposes different disposal methods of each category,then forms the disposal mechanism of zombie enterprises,and analyzes with actual cases of listed companies.Meanwhile,this paper optimizes the accessorial mechanisms which includes the legal system of macro disposal mechanism,government working mechanism and integrated supporting mechanism,improves early warning of macro zombification risk,establishes the zombification risk management mechanism,and eventually forms a long-term disposal mechanism of zombie enterprises.The paper innovates from the following three aspects:Firstly,this paper discovers the zombification regularity of zombie enterprises.Based on the domestic and foreign researches and the core characteristics of zombie firms,this study proposes the identification criteria which is comprehensive,scientific and data accessible,and widens the angle of the research of zombie enterprises.Besides,this paper selects fundamental financial ratios,corporate gorvenance ratios and external funding dependence ratios,adapts the information entropy method that is in accord with the objectives of this study to evaluate the ratios,and establishes tha zombie index to measure the data characteristics of zombie enterprises and the degree of zombification at certain time,reveals the zombification regularity of zombie enterprises,and enriches the research thoughts and contents of zombie enterprises.Secondly,this paper exposes the classified disposal mechanism of zombie enterprises.After the requirement of classified disposal of zombie firms of government has been made,the academic researchers pay more attention to the disposal of zombie enterprises,and those studies mainly focus on the theoretical analysis of the classification of zombie firms from the perspectives of economy,management,law and so on.Few studies combine the theoretical analysis of the classification with actual data and information.This research establishes the zombie index,combines the zombie index with zombie duration,forms the comprehensive quantatitive classification criteria of zombie enterprises,classifies the zombie firms into three categories that include mild,morderate and severe zombification,proposes proper disposal methods to each catergory,reveals the relationship among zomgbie firms,classification criteria,and disposal methods,and exposes the classified disposal mechanism of zombie enterprises.The classification method widens the research of zombie firms,and provides reference to the disposal of zombie firms for enterprises and government.Last but not the least,this paper improves the disposal mechanism of zombie enterprises.Specifically,this study gives suggestions to the accessorial mechanisms which includes the legal system of macro disposal mechanism,government working mechanism,and integrated supporting mechanism of zombie firms from the macroeconomy level.Besides,this paper optimizes the early warning of macro zombification risk,builds a comprehensive mechanism of zombification risk management which indudes organization system of zombification risk and corporate culture,communication and report of information,strategic goals setting,and identification and coping with zombification risk,contributes to the improvement of the efficiency and effectiveness of disposing zombie enterprises. |
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