Results 1 to 10 of about 220,317 (159)
Identifying the Real Effects of Zombie Lending [PDF]
Review of Corporate Finance Studies, 2020 Abstract The policy response to COVID-19 includes the provision of credit guarantees to firms, a provision that may generate zombie lending. According to the recent literature, the relative performance of healthy firms deteriorates as the fraction of zombies increases. We argue that this literature faces a serious identification problem,
Fabiano Schivardi +2 more
exaly +9 more sources
Resource reallocation and zombie lending in Japan in the 1990s [PDF]
Review of Economic Dynamics, 2015 Abstract We investigate how resources were reallocated in Japan during the 1990s, a decade of economic recession, by measuring aggregate productivity growth (APG) using plant-level data of manufacturers from 1981 to 2000. We find that the contribution to APG of resource reallocation deteriorated in the 1990s and became negative during the late 1990s,
Hyeog Ug Kwon, Futoshi Narita
exaly +6 more sources
On-Site Inspecting Zombie Lending [PDF]
SSRN Electronic Journal, 2020 “Zombie lending” remains a widespread practice by banks around the world. In this paper, we exploit a series of large-scale on-site inspections made on the credit portfolios of several Portuguese banks to investigate how these inspections affect banks’ future lending decisions. We find that an inspected bank becomes 20% less likely to refinance zombie
Diana Bonfim +3 more
semanticscholar +8 more sources
Zombie-Lending in the United States -- Prevalence versus Relevance
, 2022 Extraordinary fiscal and monetary interventions in response to the COVID-19 pandemic have revived concerns abou tzombie prevalence in advanced economies.The literature has already linked this phenomenon {observed over the course of the last two decades {to impeding the performance of healthy firms in Japan and Europe.To make the case for the United ...
Göbel M, Tavares N.
europepmc +7 more sources
Preventing Zombie Lending [PDF]
Review of Financial Studies, 2013 Because of limited liability, insolvent banks have an incentive to continue lending to insolvent borrowers, in order to hide losses and gamble for resurrection, even though this is socially inefficient. We suggest a scheme that regulators could use to solve this problem.
Max Bruche, Gerard Llobet
semanticscholar +5 more sources
The Zombie Lending Channel of Monetary Policy
SSRN Electronic Journal, 2023 We identify a new channel in the monetary policy transmission to nonfinancial corporates—the zombie lending channel. Our findings show that unviable and unproductive zombie firms are less affected by contractionary monetary policy relative to other firms because of a more muted tightening in credit conditions.
Bruno Albuquerque, Chenyu (Sophia) Mao
semanticscholar +5 more sources
The impact of COVID-19 and bank capital ratio on loan changes of ASEAN-5’s banking industry [PDF]
Banks and Bank Systems, 2023 The COVID-19 pandemic has affected economies around the world, including the banking industry, and this depends on various factors. The aim of this study is to understand the influence of COVID-19 independently and through the moderation of bank capital ...
Michael Abraham Hukom +1 more
doaj +1 more source
The Role of Different Types of Creditors on Zombie Firm Creation
Notas Económicas, 2022 Despite the key role of trade creditors as sources of finance, the literature on their impact on the proliferation of zombie firms is rare. This study examines whether suppliers, such as banks, engage in “evergreen” lending to zombie firms and whether ...
Carlos Carreira, Joana Lopes
doaj +1 more source
Zombie Lending and Policy Traps
SSRN Electronic Journal, 2021 We build a model with heterogeneous firms and banks to analyze how policy can affect the efficiency of credit allocation and long-term economic outcomes. When transitory demand or productivity shocks are small, conventional monetary policy can restore efficient bank lending and production by lowering interest rates. For moderately large shocks, however,
Viral Acharya +2 more
openaire +2 more sources
Optimal bankruptcy regime: a literature review
Future Business Journal, 2023 An optimal bankruptcy regime is one which avoids taking/giving loans during financial crisis, provides a provision for entrepreneurship, and further provides for achieving a maximum total value for the distressed firm.
N.V.V. Satyanarayana Puchakayala +1 more
doaj +1 more source