Li, Xuchao; Shao, Xiang; Shen, Guangjun; Zou, Jingxian - 2023
distressed firms obtaining zombie lending. Using China’s 2009 bank entry deregulation as a quasi-natural experiment, the paper …Can bank competition help attenuate the prevalence of zombie firms? Motivated by a stylized model, this paper studies … the effect of bank competition on the formation of zombie firms in two stages: the formation of distressed firms and …