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Journal article Open Access Scopus Source The journal / series is indexed in Scopus (SCImago list). The article itself has not been verified. 7 Citations Quartil Q3

How zombie firms affect healthy firms: The case of Portuguese trade sector

Armando Da Silva , Ana Gonçalves
ISLA — Instituto Politécnico de Gestão e Tecnologia
Revista Galega de Economía, 14 11 2022
DOI: 10.15304/rge.31.3.8295

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Abstract
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.

Keywords

#zombie firms #business survival #Investment #labor productivity #Job creation #wholesale and retail trade #hospitality industry #Hotel industry #Economic crisis #bank support #government support #portugal #Zombie #Productivity #Workforce #business #Investment (military) #Panel data #Hospitality #Revenue #Portuguese

Bibliographic Details

Publication Type Journal article
Publication Year 2022
Journal / Conference / Work Revista Galega de Economía
Quartile (SCImago) Q3
Scopus Indexing Indexed source (via SCImago)

ISLA Authors & Affiliations

A
Armando Mendes Jorge Nogueira da Silva
armandosilva@iscap.ipp.pt ID: CB17-C1F4-CC37
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