Volume 29, Issue 5, 2020
DOI: 10.24205/03276716.2020.1133
ZOMBIE COMPANIES: EXPERIMENTAL RESEARCH FROM REAL ESTATE LISTED SECTORS
Abstract
This paper aims to identify factors affecting the ability of a listed company in the real estate industry to become zombie company (ZC) and how real estate enterprises themselves affect the performance of enterprises in such industry. The study uses secondary data collected from the financial statements of 48 listed real estate companies in Vietnam from 2008-2016. Empirical research results show that: (i) during the research period, the highest rate of zombies in real estate listed companies was 32.65% in 2013; (ii) Zombie companies have lower financial performance (ROA, ROE) than healthy companies, and healthy companies also have current solvency and total assets turnover. higher than zombie companies; Zombie companies tend to be smaller in scale than healthy companies; (iii) to reduce the risk of becoming a zombie, companies should expand capital scale, increase total asset turnover and increase production and business efficiency; (iv) zombies and revenue growth of zombies have a negative effect on the performance of the whole industry and thus negatively affect the economy.
Keywords
ZOMBIE COMPANIES, EXPERIMENTAL RESEARCH