[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/tky/jseres/2012cj244.html
   My bibliography  Save this paper

"What happened to "Zombie" Firms in Japan?: Reexamination for the lost two decades" (in Japanese)

Author

Listed:
  • Jun-ichi Nakamura

    (Institute of Economic Research, Hitotsubashi University)

  • Shin-ichi Fukuda

    (Faculty of Economics, University of Tokyo)

Abstract
The Japanese economy experienced prolonged recessions during the 1990s and the 2000s. Until the early 2000s, evergreen lending to "zombie firms" had distorted market discipline in terms of stabilizing the Japanese economy. A majority of the "zombie" firms recovered during the first half of the 2000s. However, deflation in Japan still persisted even in the 2000s. The purpose of this paper is to investigate how zombie firms recovered in Japan. We investigate the nature of corporate restructuring that was effective in reviving zombie firms in the 1990s and the 2000s. The regressions suggest that cost cuts such as reducing the employee strength of zombie firms and selling its fixed assets were beneficial in facilitating their recovery. However, sales growth was ineffective for the recovery especially in the 2000s. The results may suggest that corporate restructuring without innovations may be responsible for the Japan's prolonged deflation in the 2000s.

Suggested Citation

  • Jun-ichi Nakamura & Shin-ichi Fukuda, 2012. ""What happened to "Zombie" Firms in Japan?: Reexamination for the lost two decades" (in Japanese)," CIRJE J-Series CIRJE-J-244, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:jseres:2012cj244
    as

    Download full text from publisher

    File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2012/2012cj244.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tky:jseres:2012cj244. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CIRJE administrative office (email available below). General contact details of provider: https://edirc.repec.org/data/ritokjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.