The Influence Of The Zombie Enterprise Earnings Management On The Credit Financing

Zombie companies are those enterprises that they have low profits,have poor operating capacity and rely on bank credit and government bailouts to sustain their operations.Zombie enterprises occupy production resources,and they lead to and worsen overcapacity.At the same time,the existence of zombie enterprises will hinder the healthy development of the market economy.Therefore,they have gradually become a hot topic of social concern.Financial information,especially earnings information,reflects the profitability and solvency of enterprises,and is an important basis for enterprises to obtain credit financing.When bad enterprises can not meet the credit conditions of banks,they may manipulate financial information by means of earnings management to achieve the purpose of credit financing.Credit financing is important for the maintenance of zombie enterprises.Corporate zombie is a dynamic evolution process,but few scholars study from its dynamic perspective.Therefore,from the dynamic perspective of the evolution of zombie enterprises,this paper studies how the credit financing situation of zombie enterprises changes in different evolution stages and how earnings management in each stage affects credit financing.At the same time,we consider whether the nature of ownership will affect the role of earnings management in credit financing.Firstly,this paper summarizes the methods of zombie enterprise identification and the impact of earnings management on credit financing.Based on information asymmetry,principal-agent theory and so on,the research hypothesis of this paper is put forward.Secondly,this paper constructs the zombie enterprise identification index,and screens out the zombie enterprises in Shanghai and Shenzhen A-share from 2011 to 2016.And we divided the non-zombie and zombie stages of the enterprise by year and the zombie enterprise identification index.Finally,this paper uses the related data of two stages of zombie enterprises,using univariate test,multiple regression and other methods to carry out empirical analysis.The results show that:(1)The level of credit financing in zombie stage is significantly higher than that in non-zombie stage.(2)In the non-zombie stage,earnings management behavior does not help enterprises to obtain credit financing;in zombie stage,earnings management behavior helps enterprises to obtain credit financing.(3)Compared with state-owned zombie enterprises,the earnings management of private zombie enterprises can help them to obtain bank credit financing.Based on the above findings,it can be found that special financing phenomenon in the background of Chinese system and the attitude of credit personnel in dealing with earnings management of enterprises.It can enrich the research content of earnings management of zombie enterprises.And it is of great significance to prevent credit risk and optimize the allocation of credit resources.