ZOMBIE FIRMS IN THE ITALIAN BUSINESS ECOSYSTEM: THE CASE OF THE SMALL AND MEDIUM SIZED ENTERPRISES

Abstract

An analysis that identifies all those firms that have low or even negative profitability and are unable to meet the financial challenges of repaying their debts in the short and medium term. These highly vulnerable companies, known as zombies, manage to survive in the market by constantly refinancing their debt. They have a negative impact on the economy by affecting the productivity and growth of other companies in the market. But what are the reasons for their survival and what are the factors that influence their creation and continued existence? The possible variables to consider when studying these companies are diverse and range from financial variables such as assets, debt and equity to aspects of the companies such as the number of employees or age. This study will figure out the situation of these firms on the Italian market. The world of Italian small and medium-sized enterprises will be evaluated. We will understand how to identify these companies and we will try to understand which are the most influential aspects. With the aim not only to understand theoretically what exactly these firms are and what their main characteristics are, but also to be able to identify this phenomenon and find possible solutions for their recovery.