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Does Joint Credit Granting inhibit corporate zombification? Evidence from China

Na Sun et al.

China Finance Review International2026https://doi.org/10.1108/cfri-05-2025-0322article
AJG 1ABDC A
Weight
0.50

Abstract

Purpose The frequent emergence of zombie firms jeopardizes the development of the real economy, and bank credit misallocation is the key reason for this. In this regard, the paper examines whether Joint Credit Granting-a policy regulating bank credit practices-effectively mitigates corporate zombification. Design/methodology/approach This paper analyzes a dataset of Chinese listed firms from 2013 to 2022 and uses a difference-in-differences approach. The Joint Credit Granting is regarded as a quasi-natural experiment. Findings The implementation of Joint Credit Granting significantly inhibits corporate zombification. This effect is realized through two primary channels: enhancing corporate information transparency and internal governance efficiency, and correcting the misallocation of bank credit. Originality/value This paper offers novel insights into the efficacy of Joint Credit Granting and provides valuable perspectives on the governance of zombie firms. In addition, this paper enriches the economic effects research on bank information-sharing mechanisms.

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https://doi.org/https://doi.org/10.1108/cfri-05-2025-0322

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@article{na2026,
  title        = {{Does Joint Credit Granting inhibit corporate zombification? Evidence from China}},
  author       = {Na Sun et al.},
  journal      = {China Finance Review International},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/cfri-05-2025-0322},
}

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Does Joint Credit Granting inhibit corporate zombification? Evidence from China

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.