Naslov
Are zombies productive or not?

Autori
Belullo, Alen ; Broz, Tanja ; Ridzak, Tomislav

Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, sažetak, znanstveni

Izvornik
Future World by 2050 / - Pula, 2017, 45-45

ISBN
978-953-7320-57-7

Skup
8th International Conference "Future World by 2050"

Mjesto i datum
Pula, Hrvatska, 01.07.2017. - 03.07.2017

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Podatak o recenziji nije dostupan

Ključne riječi
zombie firms, total factor productivity, misallocation, micro level data

Sažetak
Increasing productivity at the firm level is important contributor to the overall economic activity. At the same time bank lending is a significant source of financing for firms, especially in continental European countries where non-bank financial intermediation is less developed. However, due to their self-interest, bankers sometimes opt for saving financially weak firms by extending loans or issuing new. We call firms with persistent financial difficulties zombie firms. In this paper we investigate the relationship between zombie firms’ loan arrangements and their productivity. In other words, we are interested in how productivity behaves in firms that are financially weak, but still receive loans from the bank. Results show that there is a statistically significant positive link between increasing financing and productivity for healthy firms, while this relationship is non- existent for zombie firms. Since giving loans to financially weak firms means less loans for sound firms, which could use additional funds in a more productive way, our result implies that additional vigilance is warranted for the policy makers.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA