Affiliation:
1. Economics and Finance Department Excelia Business School, CERIIM La Rochelle Nouvelle‐Aquitaine France
2. Department of Finance NEOMA Business School Mont‐Saint‐Aignan Normandie France
Abstract
AbstractQuantitative easing policies have resulted in a significant increase in credit, posing a threat to developed countries' economic stability. This research aims to analyze the impact of distorted interest rates and readily available capital on creating “zombie firms” in the context of Mises–Hayek's malinvestment theory. The study highlights the importance of understanding these factors to prevent firm failure and recommends limited intervention in interest rates and capital availability before crises. Additionally, the study advocates for implementing flexible insolvency regimes for insolvent firms post‐crisis to mitigate the risk of corporate zombification.
Subject
Management of Technology and Innovation,Management Science and Operations Research,Strategy and Management,Business and International Management