Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/268727 
Authors: 
Year of Publication: 
2023
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 2/2023
Publisher: 
Bank of Finland, Helsinki
Abstract: 
Analyses of zombie firms have emphasised the role of bank financing as the reason for zombie survival. This conclusion was made despite no comparative analysis of the sources of external finance for zombie firms. This paper provides the first analysis of that sort using Finnish data. Surprisingly, the results show quite clearly that there is no connection between zombie survival and bank financing; this result is robust to various measurement and specification issues. Instead, a role is found for owners (i.e. equity funders) in keeping zombies alive in the (often correct) anticipation of the firm recovering.
Subjects: 
zombie firms
banks
credit constraints
firm-level data
panel data
JEL: 
D25
E51
G2
G3
ISBN: 
978-952-323-431-4
Document Type: 
Working Paper

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