Zombie Nation: In Japan, Zero Public Companies Went Bust in 2016
- Last time no listed companies went bankrupt was 26 years ago
- Easy credit keeps weak firms alive, worsens labor shortage
Why Zero Japanese Bankruptcies May Be a Problem
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Corporate Japan achieved a rare feat in the fiscal year that ended last week. Not one of its almost 4,000 publicly-traded firms filed for bankruptcy protection.
Yet that’s no reason to celebrate, according to analysts who see Japan’s easy credit conditions standing in the way of a much-needed, corporate restructuring to flush out failing companies and make room for new businesses.