How zombie firms affect healthy firms: The case of Portuguese trade sector
Zombie companies can be classified as being nonprofitable, having low productivity and being ten years old or over; these businesses continue to exist due to the support of banks and governments. This paper aims to understand the impact of these types of firms on the investment, employment growth a...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Universidade de Santiago de Compostela
2022-11-01
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| Series: | Revista Galega de Economía |
| Subjects: | |
| Online Access: | https://revistas.usc.gal/index.php/rge/article/view/8295 |
| _version_ | 1811165199009316864 |
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| author | Armando da Silva Ana Gonçalves |
| author_facet | Armando da Silva Ana Gonçalves |
| author_sort | Armando da Silva |
| collection | DOAJ |
| description |
Zombie companies can be classified as being nonprofitable, having low productivity and being ten years old or over; these businesses continue to exist due to the support of banks and governments. This paper aims to understand the impact of these types of firms on the investment, employment growth and labour productivity of healthy companies from the wholesale and retail trade and the hospitality sector during the period 2011-2018. The data obtained indicate that the prevalence of zombie companies in Portugal (in the sectors under study) is higher in periods of economic crisis and that most of them are old and large companies, especially in the hotel industry sector. By using panel data models with fixed effects, our investigation concludes that zombie firms negatively affect how healthy companies are run, because they reduce the latter’s investment expenditure and workforce productivity.
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| first_indexed | 2024-04-10T15:33:22Z |
| format | Article |
| id | doaj.art-646e47f4daf74fd3934e0592dd9847d0 |
| institution | Directory Open Access Journal |
| issn | 1132-2799 2255-5951 |
| language | English |
| last_indexed | 2024-04-10T15:33:22Z |
| publishDate | 2022-11-01 |
| publisher | Universidade de Santiago de Compostela |
| record_format | Article |
| series | Revista Galega de Economía |
| spelling | doaj.art-646e47f4daf74fd3934e0592dd9847d02023-02-13T11:03:30ZengUniversidade de Santiago de CompostelaRevista Galega de Economía1132-27992255-59512022-11-0131310.15304/rge.31.3.8295How zombie firms affect healthy firms: The case of Portuguese trade sectorArmando da Silva0Ana Gonçalves1Instituto Politécnico do Porto - ISCAPInstituto Politécnico do Porto - ISCAP Zombie companies can be classified as being nonprofitable, having low productivity and being ten years old or over; these businesses continue to exist due to the support of banks and governments. This paper aims to understand the impact of these types of firms on the investment, employment growth and labour productivity of healthy companies from the wholesale and retail trade and the hospitality sector during the period 2011-2018. The data obtained indicate that the prevalence of zombie companies in Portugal (in the sectors under study) is higher in periods of economic crisis and that most of them are old and large companies, especially in the hotel industry sector. By using panel data models with fixed effects, our investigation concludes that zombie firms negatively affect how healthy companies are run, because they reduce the latter’s investment expenditure and workforce productivity. https://revistas.usc.gal/index.php/rge/article/view/8295Zombie companiesFixed effects modelInvestment expenditureProductivity |
| spellingShingle | Armando da Silva Ana Gonçalves How zombie firms affect healthy firms: The case of Portuguese trade sector Revista Galega de Economía Zombie companies Fixed effects model Investment expenditure Productivity |
| title | How zombie firms affect healthy firms: The case of Portuguese trade sector |
| title_full | How zombie firms affect healthy firms: The case of Portuguese trade sector |
| title_fullStr | How zombie firms affect healthy firms: The case of Portuguese trade sector |
| title_full_unstemmed | How zombie firms affect healthy firms: The case of Portuguese trade sector |
| title_short | How zombie firms affect healthy firms: The case of Portuguese trade sector |
| title_sort | how zombie firms affect healthy firms the case of portuguese trade sector |
| topic | Zombie companies Fixed effects model Investment expenditure Productivity |
| url | https://revistas.usc.gal/index.php/rge/article/view/8295 |
| work_keys_str_mv | AT armandodasilva howzombiefirmsaffecthealthyfirmsthecaseofportuguesetradesector AT anagoncalves howzombiefirmsaffecthealthyfirmsthecaseofportuguesetradesector |