Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 12, 2023 erstellt
Description:
The zombie firm literature has typically used datasets that under-represent small firms or includes only listed firms. Past studies for Canada fall into the latter, where they show Canada has the highest zombie share in the world. This paper presents new evidence on the zombie firm phenomenon using a dataset that covers the entire population of Canadian firms. In contrast to previous results, we find the zombie share among all firms is considerably lower and diverging in trend. Listed zombies differ substantially in terms of prevalence, persistence and performance compared to their private counterparts, implying that ownership type plays a large role for zombie firm dynamics. However, even among all firms, zombification in Canada is worsening, where: zombies are increasingly in the commodity sector; are hoarding more resources; are declining in their performance and productivity; are hurting the productivity and growth of healthy firms; and are increasingly lowering aggregate productivity