Research On The Application Of Financial Information In Zombie Enterprise Identification And Governance

The lack of adequate and accurate financial information for banks,governments and regulators to do decision making is one of the important reasons for the formation of "zombie enterprises." At present,financial information should play an essential role in identifying and disposing of zombie enterprises.In particular,these imformation should presents the special nature of zombie enterprises.For example,we should evaluate new liabilities arising from bankruptcy for employees' solvency.It is considered a form of the external cost of zombie enterprises.In the long run,establishing an effective zombie enterprise prevention mechanism also needs sufficient financial information to provide decision-making basis for multiple parties.In a word,it is necessary to optimize the current accounting system and disclosure rules so as to provide support for the zombie enterprise's problem solving.At present,China's methods of identifying zombie enterprises are mostly based on the experience of Japan and the United States and have not fully considered the special national conditions of China.Although the official standard of identifying zombie enterprises released by the State Council is simple and easy to understand,it is also easy to cause misidentification of zombie enterprises,which may adversely affect the governance process of governing zombie enterprises.This paper holds the view that banks providing loans for zombie enterprises and improper government intervention are important reasons for the formation of zombie enterprises.Therefore,the paper establishes a zombie enterprise identification system based on the"government-bank-enterprise" relationship.According to the identification system,this paper using situation simulation and data accounting methods to analyze the specific financial data needed in the process of bank and government identification and governance of zombie enterprises.The financial information required by banks is mainly focused on supporting their credit decision-making needs;the financial information required by the government is based on the needs of the three governance methods:guardianship governance,mergers and acquisitions,and bankruptcy liquidation.The ultimate goal of this paper is to build a financial information disclosure system based on zombie enterprise identification and governance.This system aims to support the financial information needs of the zombie enterprise identification and disposal process,and also build a long-term mechanism to prevent zombie enterprises in the future.This paper points out the financial information needs in the decision-making of banks,government and other economic entities based on the causes and countermeasures of zombie enterprises,aiming to connect these information to the real situation in supervision and other aspects which can directly relate to the response and prevention of zombie enterprises.This paper aims to explore the accounting rules for zombie enterprise problems from the theoretical system and implementation methods aspects through systematic research and situational analysis based on method innovation.Thus can this paper fill the gaps in financial accounting theory in zombie enterprise identification and governance,to provide supports to solve the problem of zombie enterprises.