Zombie firms in Canada

Articles and reports: 36-28-0001202300300003

Description: In Canada and other advanced economies, the share of zombie firms, defined as businesses that perform poorly over a long period of time without exiting, has been rising over the past few decades. Recent studies have shown that the share of zombie firms in Canada could potentially be the highest in the world. However, these studies for Canada are based only on publicly traded Canadian firms. This paper presents new evidence on zombification using not only publicly traded firms but also Canadian controlled private corporations, which make up a large proportion of businesses in Canada.
Issue Number: 2023003
Author(s): Amundsen, Alexander; Lafrance-Cooke, Amélie; Leung, Danny
FormatRelease dateMore information
HTMLMarch 22, 2023
PDFMarch 22, 2023