Assessing the evolution of zombie firm dynamics in the EU during COVID-19: a novel identification method and comparative analysis

What is it about?

Our research introduces a new way to define and measure "zombie firms," and a a unique clustering methodology for analysing policy impacts across multiple nations. We analyzed data from five European countries and found that during the 2020 pandemic, the number of zombie companies increased more in the most supportive countries compared to the least supportive ones. However, this trend reversed, with a decline in zombie firms after the withdrawal of support by 2022.

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