Diagnosis On The Problem Of Zombie Survival For China First Heavy Industries

The sustained slowdown in global economic development has further exacerbated the situation of overcapacity in China's enterprises.More and more enterprises have joined the group of zombie enterprises,especially state-owned enterprises.These enterprises not only take up a large amount of credit resources,but also suffer serious losses.Enterprise zombie survival seriously affected the normal development of China's economy,zombie enterprise governance issues are concerned by the government and the community,how to effectively solve the zombie enterprise is a both theoretical and practical significance of the subject.In this paper,I take China first heavy industries as a research object,according to the development situation to make diagnosis,mainly use the financial data analysis and comparative analysis to analyze China first heavy industries to find the problems in their business processes,and analyze the causes of "Zombie" survive for China first heavy industries.With low profitability,low utilization of assets,high cost and high debt business conditions,China first heavy industries suffer heavy loss for four consecutive years,and depend larger on bank loans and government subsidies,which in line with "zombie" survival characteristics.Found that there are some problems for China first heavy industries in operation process,such as unbalanced ownership structure,problems in board decision-making,lack of incentive and restriction in management layer,the role of government subsidy not obvious,irrational product structure,irrational human resource management,low efficiency of capital operation and insufficient innovation power in the process of company operation.According to these problems,company have to adjust ownership structure,strengthen the management of board directors,Perfect the incentive and restraint system for the manager,the state changes the subsidy to the firm,the end of the paper,adjust the product structure,Market selection the talented person from market,improve the efficiency of capital operation and the core competitiveness of enterprises.Through the above improvements and suggestions to help solve the dilemma of reality.It also help other "zombie" enterprises on governance.