Proceedings of 2025 2nd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2025)

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Impact of Bankruptcy System on the Disposal of Zombie Enterprises: Evidence from China’s Industrial Enterprise Database

Authors
Yuqi Duan1, *
1Business School of Xiangtan University, Xiangtan City, China
*Corresponding author. Email: 444706287@qq.cm
Corresponding Author
Yuqi Duan
Available Online 7 June 2025.
DOI
10.2991/978-94-6463-752-6_7How to use a DOI?
Keywords
Enterprise Bankruptcy Law; Zombie Firms; Corporate Exit
Abstract

In this paper, building on industrial enterprise data, a difference-in-differences approach is employed to evaluate the impact of the Enterprise Bankruptcy Law on zombie firms’ market exit behavior. The estimation results indicate that, on average, the law raises the likelihood of zombie firms exiting the market by 2.6%, with a stronger impact observed in smaller firms and those with shorter durations. Mechanism analysis reveals that the law substantially intensifies the financing constraints faced by zombie firms.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of 2025 2nd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
7 June 2025
ISBN
978-94-6463-752-6
ISSN
2352-5428
DOI
10.2991/978-94-6463-752-6_7How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yuqi Duan
PY  - 2025
DA  - 2025/06/07
TI  - Impact of Bankruptcy System on the Disposal of Zombie Enterprises: Evidence from China’s Industrial Enterprise Database
BT  - Proceedings of 2025 2nd International Conference on Applied Economics, Management Science and Social Development (AEMSS 2025)
PB  - Atlantis Press
SP  - 61
EP  - 72
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-752-6_7
DO  - 10.2991/978-94-6463-752-6_7
ID  - Duan2025
ER  -