AN EMPIRICAL STUDY ON THE ECONOMIC CONSEQUENCES OF ENTERPRISE BANKRUPTCY BASED ON CHINESE LISTED COMPANIES

Abstract

With the deepening of China's reform and opening up and the increasing degree of market opening, corporate bankruptcies are common.  As a micro subject of the market economy, the bankruptcy of enterprises is bound to have a negative impact on the healthy development of the national economy, so it is of great practical significance to investigate the economic consequences of the bankruptcy of enterprises.  This paper takes Chinese A-share listed companies from 2003 to 2018 as research samples to investigate the impact of corporate bankruptcy on local investment efficiency, unemployment rate, industrial institutions, bank liquidity and regional economic development.  Empirical research by constructing multiple regression analysis model, this paper found: enterprise bankruptcy has a negative effect, found that will reduce its region for the bankruptcy of the enterprise investment efficiency, improve the area's unemployment rate, reducing the speed of the regional economic development in region, hinder the region industrial structure rationalization and high-grade, and reduce the bank liquidity risk.  This paper reveals the economic consequences of enterprise bankruptcy, and provides policy reference for government departments to formulate relevant measures to prevent enterprise bankruptcy and promote the healthy development of enterprises.