The Dead versus the Living
SUMMARY
INTRODUCTION
The Bank for International Settlements (BIS) recently published research on the rise of zombie companies, which are firms where operating profits are below interest rate payments. The research highlights that the number of these companies is proportionally increasing and that these are less productive than other firms. They also crowd out investment in and reduce employment at healthier companies. Like zombies in literature and the movies, these firms seem to have a negative impact on society. In this short research, we will analyze the performance and characteristics of zombie companies in the US stock market.
METHODOLOGY