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Edward Altman and Wei Wang Talk Zombie Companies With Reorg’s Gaurav Sharma

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The Impact of Bankruptcy Law Reforms on Zombie Firms

This chapter analyzes the effects of bankruptcy law reforms on the prevalence and duration of zombie firms. It highlights a significant decline in the fraction of zombie firms after these reforms, particularly in countries with stronger credit rights. The chapter concludes that bankruptcy law reforms lead to a reduction in zombie firms.

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