The Financing and Investment Crowding-out Effect of Zombie Firms on Non-zombie Firms: Evidence from China

Can pay‐performance sensitivity cure zombie firms? Evidence from China

“…Fukuda and Nakamura (2011) added the ‘profitability criterion’ and ‘evergreen loan criterion’ to the CHK method, which became a widely used method by scholars called the FN‐CHK method. Chinese scholars proposed a further improved method based on the fact that government intervention is the most important reason for the formation of zombie firms in China, adding the factor of government subsidies to the FN‐CHK method (X. Y. Dai et al, 2019; Huang & Chen, 2017; Y. Q. Wang & Zhu, 2020). For the causes of zombie firms' formation, most scholars believe that the continuous ‘blood transfusion’ of banks to zombie firms is the main reason for the formation of zombie firms (Fukuda et al, 2006; Hoshi & Kashyap, 2011; Peek & Rosengren, 2005; Watanabe, 2011; Zhu et al, 2019).…”

“…Qiao et al (2019) used data on zombie firms in China and found that the presence of zombie firms leads to labour resource mismatch. At the micro level, the studies of relevant scholars found that zombie firms have adverse effects on non‐zombie firms' investment and financing (Tan et al, 2017; Y. Q. Wang et al, 2018; Y. Q. Wang & Zhu, 2020), tax burden (X. C. Li et al, 2018), financial information transparency (Z. W. Dai & Pan, 2018) and corporate risk taking (F. R. Wang et al, 2019).…”

“…Dai et al, 2019;Huang & Chen, 2017; Y. Q. Wang & Zhu, 2020). For the causes of zombie firms' formation, most scholars believe that the continuous 'blood transfusion' of banks to zombie firms is the main reason for the formation of zombie firms (Fukuda et al, 2006;Hoshi & Kashyap, 2011;Peek & Rosengren, 2005;Watanabe, 2011;Zhu et al, 2019).…”

The Life‐cycle Dynamics of Zombie Companies amongst Listed Firms in China

“…Within China, zombie firms have also been found to crowd out the investment activity of viable fi rms (Tan et al, 2016;Lam et al, 2017). To an extent, the activities of nonzombie firms appear hindered by large quantities of capital being tied up with zombie fi rms (Wang and Zhu, 2020).…”

Zombi Şirketlerin Risk Düzeyi ile İlişkili Olan Finansal Özellikleri: İSO 1000 Firmaları ile Bir İnceleme

“…İşletmeler için zombi kavramı ilk olarak Kane (1987)'nin tasarruf ve kredi sigortası sektöründe yaptığı çalışmada kullanılmıştır (Kane, 1987: 77;Blažkova & Dvouletý, 2020: 21;Wang & Zhu, 2020: 1-3). Ölçülebilir göstergelere göre finansal sıkıntıda olan, iyileşme umudu çok düşük olduğu için piyasadan çıkması gereken (Blažkova & Dvouletý, 2020: 3), ancak banka kredileri ve hükümet destekleri ile faaliyetine devam eden (Hoshi, 2006: 48;Wang & Zhu, 2020: 1; Zhu, He, Wang, Ye & Liang, 2019: 107) firmalar zombi olarak tanımlanmıştır. Aynı zamanda faiz ödemelerini karşılamada sürekli sorunlar yaşayan ve yaşlı (McGowan, Andrews & Millot, 2017: 3), kar etmeyen (Caballero vd., 2008(Caballero vd., : 1944, borç ödemesi yapmaya yetecek kadar kar elde etmeyen ve genç (Banerjee & Hofmann, 2018: 67-68), verimsiz ve borca batık (Ahearne & Shinada, 2005: 363;Fukuda, Kasuya & Nakajima, 2006: 488), iflas etmiş (Fang, Gozgor, Lau, Wu & Yan, 2020: 2) veya negatif öz kaynağa sahip olan (Urionabarrenetxea vd., 2016;Urionabarrenetxea vd., 2017;Blažkova & Dvouletý, 2020) ancak sözü edilen finansal sıkıntılara rağmen faaliyette olan firmalar da zombi olarak ifade edilmiştir.…”