Home >> Working Paper
Debt Rollover and Structural Deleverage
Read        DownLoad
TitleDebt Rollover and Structural Deleverage  
AuthorZhang Yilin and Pu Ming  
OrganizationSouthwestern University Of Finance And Economics; 
Key WordsDeleverage; Debt Rollover; Zombie Firms; Economic Uncertainty 
AbstractThis paper investigates the impact of economic uncertainty on bank’s debt rollover. We find that economic uncertainty distorts bank’s rollover decision in the way that the bank may rollover zombie firms’ debt while deleveraging normal firms’ debt, even in absence of government intervention (subsidies to state-owned enterprises, for example). This implies that in the recent structural deleverage in China, the phenomenon of keeping “bad” leverage while reducing “good” leverage might indicate market failure. 
Serial NumberWP1332 
  • Institute of Economics, Chinese Academy of Social Sciences
  • Copyright Economic Research Journal
  • The uploaded articles by this website express the authors’ views, not necessarily the views of this website.
  • Perennial Legal Counsel: Lu Kang (Chong Guang Law Office)
  • ISSN 0577-9154 CN 11-1081/F Postal Distribution Code 2-25l (Domestic) M16 (Overseas)
  • ICP 10211437 (Beijng)
  • No.2,Yuetan Bei Xiaojie, Xicheng District, Beijing 100836, P. R. China
  • Phone/Fax: (+8610) 68034153