IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v14y2024i3p21582440241271199.html
   My bibliography  Save this article

The Influence of Zombie Enterprises on Quantity and Quality of Entrepreneurship: Does Banking Competition Matter

Author

Listed:
  • Xiangmin He
  • Shenrun Yan
  • Jingyun Miao

Abstract

Entrepreneurship plays a pivotal role in driving economic development and social progress. In contrast to existing literature that primarily focuses on the impact of zombie enterprises on innovation, resource distortion, and environmental pollution, this study aims to investigate the influence of zombie enterprises on entrepreneurship by utilizing data from prefecture cities in China. Additionally, we explore how banking competition moderates this relationship. Employing the system GMM estimator, our findings reveal that zombie enterprises significantly hampers urban entrepreneurship quantity and diminishes entrepreneurship quality. Furthermore, the inhibitory effect of zombie enterprises on entrepreneurship quality is greater than that of entrepreneurship quantity. In addition, we observe that state-owned zombie enterprises have a more pronounced negative impact compared to private zombie enterprises. Notably, banking competition exhibits a nonlinear moderating effect on the association between zombie firms and entrepreneurship; joint-stock banks and city commercial banks play prominent roles in shaping this effect. Threshold model regression analysis confirms these nonlinear effects. Overall, our conclusions offer important policy implications for accelerating the disposal of zombie firms as well as enhancing entrepreneurship quantity /quality to promote high-quality urban development.

Suggested Citation

  • Xiangmin He & Shenrun Yan & Jingyun Miao, 2024. "The Influence of Zombie Enterprises on Quantity and Quality of Entrepreneurship: Does Banking Competition Matter," SAGE Open, , vol. 14(3), pages 21582440241, August.
    • Handle: RePEc:sae:sagope:v:14:y:2024:i:3:p:21582440241271199
    DOI: 10.1177/21582440241271199
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440241271199
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440241271199?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:14:y:2024:i:3:p:21582440241271199. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.