Query Result Set
SLIM21 Home
Advanced Search
My Info
Browse
Arrivals
Expected
Reference Items
Journal List
Proposals
Media List
Rules
ActiveUsers:1269
Hits:21098255
Show My Basket
Contact Us
IDSA Web Site
Ask Us
Today's News
Help
Topics
Tutorial
Advanced search
Hide Options
Sort Order
Natural
Author / Creator, Title
Title
Item Type, Author / Creator, Title
Item Type, Title
Subject, Item Type, Author / Creator, Title
Item Type, Subject, Author / Creator, Title
Publication Date, Title
Items / Page
5
10
15
20
Modern View
FAN, HE
(2)
answer(s).
Srl
Item
1
ID:
065759
Reform of the renminbi exchange rate
/ Fan, He; Feng, Lu
Fan, He
Journal Article
0 Rating(s) & 0 Review(s)
Publication
2005.
Key Words
Economy
;
Exchange Rate
;
China - Economy
In Basket
Export
2
ID:
169159
Zombie firms and debt accumulation: a theoretical framework and Chinese experience
/ Zhu, He; Fan, He; Wang, Shennan ; Qianlin, Ye
Fan, He
Journal Article
0 Rating(s) & 0 Review(s)
Summary/Abstract
In recent years, as China has grappled with rising debt and broad economic restructure, the prevalence of zombie firms has become a critical problem. This paper provides a theoretical framework illustrating the rationale behind the occurrence of zombie firms from the perspective of banks. We develop differential equations to model a bank's expectation and the ex ante estimate that underlies its decision to refinance an insolvent borrower. An optimistic expectation is essential in zombie lending and is intrinsic to the countercyclical pattern of zombie firms. Our model also predicts that debt can build up to an unsustainable level if recovery of profitability is sluggish or the initial debt burden is too high. Examining the Chinese experience of zombie firms over 2007–2017, this paper highlights two findings. First, the share of zombie firms among Shanghai and Shenzhen A‐share listed companies demonstrates a countercyclical pattern. Second, the positive correlation between zombie share and debt accumulation across manufacturing sectors sheds light on the link between zombie firms and the rising corporate debt in China. To deal with the “zombie” problem, the government should carefully weigh its policies to avoid further distortions because the occurrence of zombie firms may be inevitable and impossible to eliminate.
Key Words
Bank Credit
;
Zombie Firm
;
China's Debt Risk
;
Debt Accumulation
;
Over Capacity
In Basket
Export