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Undesirable Side Effect of Coronavirus Measures: Zombies?

Author

Listed:
  • Lukas Arth
  • Klaus Gründler
  • Niklas Potrafke
  • Fabian Ruthardt
  • Jannik Sielmann

Abstract

German economists fear that in the coronavirus crisis, the number of zombie companies will increase. In the current ifo and FAZ Economists Panel, 86 percent of the participating economists estimate that the number of zombie companies in Germany has “increased” or “sharply increased” since March 2020. In their opinion, the temporary waiving of the obligation to file for insolvency plus the short-time work allowance pose the greatest risk for the emergence of zombie companies.

Suggested Citation

  • Lukas Arth & Klaus Gründler & Niklas Potrafke & Fabian Ruthardt & Jannik Sielmann, 2020. "Undesirable Side Effect of Coronavirus Measures: Zombies?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(11), pages 50-52, November.
    • Handle: RePEc:ces:ifosdt:v:73:y:2020:i:11:p:50-52
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    File URL: https://www.ifo.de/DocDL/sd-2020-11-arth-etal-oekonomenpanel-zombiefirmen.pdf
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    References listed on IDEAS

    as
    1. Viral V Acharya & Tim Eisert & Christian Eufinger & Christian Hirsch, 2019. "Whatever It Takes: The Real Effects of Unconventional Monetary Policy," The Review of Financial Studies, Society for Financial Studies, vol. 32(9), pages 3366-3411.
    2. Fabiano Schivardi & Enrico Sette & Guido Tabellini, 2022. "Credit Misallocation During the European Financial Crisis," The Economic Journal, Royal Economic Society, vol. 132(641), pages 391-423.
    3. Dan Andrews & Filippos Petroulakis, 2017. "Breaking the Shackles: Zombie Firms, Weak Banks and Depressed Restructuring in Europe," OECD Economics Department Working Papers 1433, OECD Publishing.
    4. Müge Adalet McGowan & Dan Andrews & Valentine Millot & Thorsten BeckManaging Editor, 2018. "The walking dead? Zombie firms and productivity performance in OECD countries," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 33(96), pages 685-736.
    5. Ryan Niladri Banerjee & Boris Hofmann, 2018. "The rise of zombie firms: causes and consequences," BIS Quarterly Review, Bank for International Settlements, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Becker, Marco, 2021. "Zombie Companies in the Corona Pandemic or the phenomenon of covertly over-indebted companies in Germany," EconStor Preprints 233101, ZBW - Leibniz Information Centre for Economics.
    2. Klaus Gründler & Justus Mänz & Niklas Potrafke & Fabian Ruthardt, 2021. "Economists Panel: Germany after One Year of Coronavirus: Economists Take Stock of the Situation," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 74(03), pages 59-62, March.
    3. Becker, Marco, 2021. "Zombie-Unternehmen in der Corona-Pandemie oder Phänomen der verdeckt überschuldeten Unternehmen in Deutschland," EconStor Preprints 233100, ZBW - Leibniz Information Centre for Economics.

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    More about this item

    Keywords

    Insolvenz; Unternehmen; Epidemie;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy

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