EconPapers    
Economics at your fingertips  
 

Zombie firms in China's coal mining sector: Identification, transition determinants and policy implications

Xiaoyong Dai, Xiaole Qiao and Lin Song

Resources Policy, 2019, vol. 62, issue C, 664-673

Abstract: This paper uses a modified identification method to identify zombie firms from a large sample of coal mining companies in China. It analyzes the prevalence of zombie firms over time and their distribution across different regions and ownership types. It also investigates the causes of the emergence of zombies and evaluates the effectiveness of various restructuring measures for resolving zombie firms. The results indicate that government interventions and subsidized bank credit are important causes of zombie firms, and continuous financial support from the government or banks does not contribute to the recovery of zombie firms. While reductions in labor costs, ownership reforms, and deleveraging can effectively resolve zombie firms, the injection or sale of assets has an ambiguous impact on the recovery of zombie firms. This study contributes to an understanding of the causes of the emergence of zombie firms and provides some policy implications for tackling zombie firms in China's coal sector.

Keywords: Zombie firms; China's coal mining sector; Government interventions; Subsidized bank credit; Restructuring measures (search for similar items in EconPapers)
JEL-codes: L71 Q38 D01 O12 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420718303301
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:62:y:2019:i:c:p:664-673

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-11-24
Handle: RePEc:eee:jrpoli:v:62:y:2019:i:c:p:664-673