Research On Identification And Bankruptcy Reorganization Of Zombie Enterprises In Chemical Industry In China

As China’s economy enters a new normal,there are a series of problems,such as,excess production capacity,leverage up and downward pressure on the economy,and Zombie Enterprises became a hot issue.Zombie Enterprises occupy a lot of capital,land,human resources and other social resources,but the management efficiency is low,as a result,the utilization efficiency of social resources is low,and they affect the optimal allocation of resources.Zombie Enterprises are an important factor hindering capacity reduction and deleveraging,So the disposal of Zombie Enterprises is imminent.Zombie Enterprises are mostly concentrated in steel,coal and other industries with excess capacity.However,the research on Zombie Enterprises in Chinese is mostly concentrated in iron and steel enterprises,very little literature involve the chemical industry,the chemical industry as China’s national pillar industry,its importance is self-evident.But in recent years,the chemical industry also has many problems,such as,serious overcapacity,Zombie Enterprises spread,and so on.Therefore,it is of practical significance to research the identification and exit of Zombie Enterprises in chemical industry.This paper first introduces the research background and significance of the thesis,combs the literature related with Zombie Enterprises,and expounds the concepts and theoretical basis related with bankruptcy reorganization,and paves the theoretical foundation for the follow-up research.Because the accurate identification of zombie enterprises is the premise of de-zombification,and there are a variety of identification methods at present,in order to find a suitable method for Zombie Enterprises of the chemical industry,this paper uses several mainstream identification methods to identify the chemical industry.Then the thesis analyze and evaluate each identification results,It is found that the zombie index method and FN-CHK method are in good agreement with the actual situation of Zombie Enterprises in chemical industry,and the zombie index method is more accurate.On the basis of theoretical research and industry analysis,the paper select Sichuan Energy Power as the research object.In order to verify whether the zombie index method is a more accurate identification method,the paper continue to use these methods to identify the zombification of Sichuan Energy Power.And the recognition results are compared with the actual situation of the enterprise,it is further confirmed that the zombie index method is a more suitable identification method for Zombie Enterprises of chemical industry.Then,thispaper analyzes the reasons why Sichuan Energy Power select bankruptcy reorganization and de-zombification,and described in detail the implementation process of bankruptcy reorganization,which lay a foundation for the effect of bankruptcy reorganization.Finally,from four aspects of financial indicators before and after bankruptcy reorganization 、 the influence on stakeholders 、 the value of enterprises and the degree of blood transfusion dependence,this paper analyzes the effect of bankruptcy reorganization of Sichuan Energy Power.It is found that the bankruptcy reorganization improved the company′s financial position,reduce the dependence degree for outside transfusion.In addition,it is found that there are some problem in the case analysis process,namely:(1)Affiliated parties make a role in 〝transfusion〞for Zombie Enterprises,but these identification methods do not take it as a factor;(2)After bankruptcy reorganization,the enterprise plans strategic transformation,but lack of relevant talents;(3)In order to expand the market,the company adopt a loose sales policy,neglect of accounts receivable management,lead to the increase of bad debt.The last part is the summary and enlightenment,through the above case analysis of identification and bankruptcy reorganization of Zombie Enterprise,this paper get four points conclusion.First,the zombie index method is suitable for the identification of Zombie Enterprises in Chinese Chemical Industry;Second,the most significant financial characteristics of Sichuan Energy Power are long-term negative profit and high debt;And third,Bankruptcy Reorganization is an important way for Sichuan Energy Power to get out of trouble;IV,Restructuring plays a key role in the bankruptcy of Sichuan Energy Power.In addition,according to the case study and conclusion,the author thinks that there are five enlightenment for the subsequent disposal of Zombie Enterprises,that is: First,make full use of Bankruptcy Reorganization to dispose of Zombie Enterprises;Second,Classify and disposal of chemical industry Zombie Enterprises by degree of loss and debt ratio;Third,make the best of Bankruptcy Reorganization to dispose Zombie Enterprises;IV,it is better to choose high quality reorganization party in Bankruptcy Reorganization.