Corporate zombies: anatomy and life cycle

Abstract Using firm-level data on listed non-financial companies in 14 advanced economies, we document a rise the share of zombie firms, defined as unprofitable firms with low stock market valuation, from 4% late 1980s to 15% 2017. These are smaller, less productive, more leveraged, invest physical and intangible capital shrink their assets, debt employment. Their performance deteriorates several years before zombification remains significantly poorer than that non-zombie subsequent years. Over time, some 25% exited market, while 60% status. However, recovered zombies underperform compared have never been they face high probability relapsing into