Research On The Rescue Of The Zombie Enterprise Luoyang Glass By The Family Group

Since the 19 th national congress of the communist party of China(CPC),the term "high-quality development" has been put forward on many occasions and has become a major strategy for Chinese social and economic development.As a large enterprise group with high social influence,the business group plays an important role in the high-quality development of economy.However,in recent years,many "zombie enterprises" appeared in the market,which seriously affected the social and economic order.The state council and other departments have repeatedly stressed the need to eliminate "zombie enterprises" in industries with overcapacity.The business group has a large organizational structure and many hierarchies,and zombie enterprises that survive by sucking blood also appear.With the deepening of supply-side structural reform,these enterprises need to be rectified urgently.Based on the theory of soft budget constraint,internal capital market and synergistic effect,this paper adopts the case study method to study luoyang glass,a listed company:Firstly,in terms of the identification of zombie enterprises,the author combines qualitative and quantitative methods to judge the degree of rigidity of the company and the year when zombie enterprises were formed,and points out that the company is in urgent need of rescue.Secondly,it analyzes the motivation of the group to rescue luoyang glass,and then explores the rescue mode of the group to the listed companies by taking the "bird for bird" as the core to carry out the material asset restructuring,and sums up the rescue mode as the combination of "building a platform + promoting transformation + supporting funds + research capital".When verifying the results of the bailout,in addition to analyzing the market reaction during the major asset restructuring of the company,it also analyzed the development of the main business,the expansion of the asset scale,the technology research and development innovation,and combined the relevant knowledge of the enterprise life cycle to make clear that the growth of luoyang glass has been improved.In addition,it points out the possible problems in the rescue process,such as: the financial risk of listed companies is high,it is easy to generate path dependence;excessive guarantee for listed companies may increase the debt repayment risk of the group,and high related transactions may affect the overall interests of the group.In view of these problems,policy suggestions are put forward from the perspectives of listed companies,business groups and the government.The following conclusions are drawn after research:In essence,the group’s rescue of luoyang glass is an effective use of the internal capital market,and the group will provide internal resources to listed companies in trouble for the consideration of strategic layout.The introduction of high-quality assets of the group and the stripping of loss-making and backward production capacity of the listed company can help the company to get rid of the status of zombie enterprise.Meanwhile,the group can improve the growth of the listed company by using the internal capital market to build the capital operation platform of the listed company,provide financial support,and provide two-way development between the research institute and the capital market.However,listed companies that are in trouble for a long time will still be at high risk in the short term after the implementation of the rescue means,which should be paid attention to by the company.The group should also be alert to the infectivity of risks,so as not to affect the overall interests of the group.