The 291th Wenlan Financial Forum

Abstract：

Using Chinese data, we examine the impact of government procurement on firm zombification. We find that government procurement can improve firms' product competitiveness and capital use efficiency, thus avoiding the trend of zombification. Under the impact of COVID-19, firms with government customers are less likely to be zombified than those without. Consistent with the principle of promoting fair competition, the effect of government procurement on zombification is more pronounced among non-local government customers and those at higher administrative levels. We also find that government procurement has regional spillover effect, which can improve the total factor productivity of other firms in the same city. Overall, our paper responds to the debate on government support policies and zombie firms, revealing the positive impact of government procurement on firm vitality.

Speaker Introduction：

Yu Xiaoyue holds a doctoral degree in accounting from Ocean University of China and is a research assistant at the China Enterprise Working Capital Management Research Center. He is a member of the Shandong Management Society. He has published numerous academic papers in core journals such as Management World and Finance Research, and has participated in several national, provincial, and ministerial-level research projects.