How do zombie firms affect debt financing costs of others: From spillover effects views

How do zombie firms affect innovation: from the perspective of credit resources distortion

“…(Hirata 2010) argues that so‐called ‘dead loans’ to zombie firms raise interest rates of loans as a whole. Yu et al (2021) demonstrate that zombie firms significantly increase the debt financing costs of non‐zombie firms.…”

“…Ideally, in a well‐functioning market, inefficient zombie firms would go bankrupt, and scarce resources would be allocated to more efficient enterprises (Caballero et al 2008; Tan et al 2016). However, where zombie firms capture much of the credit resources, the difficulties and costs of credit finance for non‐zombie firms are higher (Hirata 2010; Yu et al 2021), which further hinders innovation in healthy firms.…”

“…Due to a fear of falling below capital thresholds, many banks continue to extend credit to insolvent borrowers, gambling that the firms will recover or that the government will bail them out. However, government intervention could also cause credit misallocation (Yu et al 2021). Direct institutional arrangements, such as lifetime employment in Japan, encourage weak firms to survive (Peek and Rosengren 2000; Hoshi 2006).…”

“…As seen, zombie firms distort the allocation of credit resources through their access to bank loans, thus jeopardising healthy firm innovation (Hirata 2010; Yu et al 2021). Therefore, sensitivity and access to financial resources may shape the negative relationship.…”

Стоимость Международных Корпораций: Причины Снижения Долговой Нагрузки В Металлургической И Горнодобывающей Промышленности

“…Существуют различные тенденции по управлению долгом, как уже упоминалось ранее, так Quynh Trang Phan [18] на основе моделей, используя набор данных вьетнамских фирм, выявил, что в целом фирмы склонны уменьшать общую сумму долга, чтобы увеличить уровень инвестиций, но коэффициент долгосрочной задолженности не оказывает существенного влияния на инвестиции фирм. Тот же самый тренд наблюдается и в Китае, где долговое финансирование постепенно сокращается, Miao Yu, Yue Mei Guo, Di Wang, Xiaohan Gao [20]. Murray Z.Franka и TaoShenb [17] на своих исследованиях получили схожие результаты.…”