Living with zombie companies: Do we know where the threat lies?

This paper shows the existence of extreme types of zombie firm, i.e. companies with negative equity that continue to do business despite having lost their entire equity. We explain how these firms are measured and how the riskier ones are defined with different determinants. Using a Spanish sample from 2010 to 2014 an index called the EZIndex is developed that includes four dimensions of the extreme zombie problem: extension, contagion, recovery signs and immediacy. The paper contributes to zombie theory on the one hand by developing a method for ranking zombie firms based on risks and changes over time, and on the other hand by using a log-linear model to detect the riskiest corporate profiles out of all these risky firms. It demonstrates significant implications that need to be considered by the competent authorities not only in terms of their impact as a whole but also in regard to the particular profile of extreme zombie firms: they are less regulated, large and located in regions with large business fabrics.     

Does Living in a Fatherless Household Compromise Educational Success? A Comparative Study of Cognitive and Non-cognitive Skills

This study addresses the relationship between various family forms and the level of cognitive and non-cognitive skills among 15- to 16-year-old students. We measure cognitive skills using standardized scores in mathematics; non-cognitive abilities are captured by a composite measure of internal locus of control related to mathematics. A particular focus lies on father absence although we also examine the role played by co-residence with siblings and grandparents. We use cross-nationally comparable data on students participating in the Programme for International Student Assessment’s release for 2012. By mapping inequalities by family forms across 33 developed countries, this study provides robust cross-country comparable evidence on the relationship of household structure with both cognitive and non-cognitive skills. The study produces three key results: first, the absence of fathers from the household as well as co-residence with grandparents is associated with adverse outcomes for children in virtually all developed countries. Second, this is generally true in terms of both cognitive and non-cognitive skills, although the disadvantage connected to both family forms is notably stronger in the former than in the latter domain. Finally, there is marked cross-national diversity in the effects associated with the presence in the household of siblings and especially grandparents which furthermore differs across the two outcomes considered.