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The Rise of Zombie Companies: Prevalence, Factors, and Impact
This chapter analyzes the prevalence of zombie companies in the largest economies from 1990 to 2021, discussing the definition and indicators used to identify them. It explores the importance of economic and legal factors, company size, economic cycles, and the growth of corporate debt in creating and sustaining zombie firms. Additionally, it examines the relationship between the high yield bond and leverage loan markets and the increasing number of zombie companies.