Zombie Firms during and after Crisis

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43310%2F22%3A43921785" target="_blank" >RIV/62156489:43310/22:43921785 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.3390/jrfm15070301" target="_blank" >https://doi.org/10.3390/jrfm15070301</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.3390/jrfm15070301" target="_blank" >10.3390/jrfm15070301</a>

Result language

angličtina

Original language name

Zombie Firms during and after Crisis

Original language description

The phenomenon of zombie firms is gaining the attention of economists across different countries of the world; the increased interest is particularly evident after periods of economic crises. In our study, we focus on the development of zombie firms in the period before and after the 2008 crisis within two different economies, i.e., Germany and the Czech Republic, to provide insight into how different conditions and the overall economic context affect the fact that companies are more prone to becoming zombie firms. We implemented a difference-in-differences regression model to estimate the treatment effect by comparing the change (difference) in the differences in observed outcomes between these two countries. The data were obtained from two databases-the database Albertina by Bisnode a.s. providing financial statements of enterprises in the Czech Republic, and the database provided by Creditreform AG, which includes annual report data for a large sample of German companies. The dataset of German enterprises included 1,444,698 observations, i.e., 338,923 firms, and the dataset of Czech enterprises included 2,139,462 observations, i.e., 523,542 firms, both across the years 2000-2016, i.e., the data sample covered the period before and after the 2008 crisis. The different development of the share of zombie firms after the great financial crisis between Germany and the Czech Republic was proven as statistically significant. The findings confirm Germany is a country with a more stable economy and with a significantly lower risk of zombie firms&apos; persistence, while the Czech Republic is at the level of the European average in terms of zombie share. The results also suggest an influence of post-crisis monetary policy on companies and the possible link between low interest rates and a growing share of zombies.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50204 - Business and management

Project

—

Continuities

O - Projekt operacniho programu

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of Risk and Financial Management

ISSN

1911-8074

e-ISSN

1911-8074

Volume of the periodical

15

Issue of the periodical within the volume

7

Country of publishing house

CH - SWITZERLAND

Number of pages

11

Pages from-to

301

UT code for WoS article

000833724700001

EID of the result in the Scopus database

2-s2.0-85134544663