Part 7/9:
While some companies like Barnes & Noble rebound, the crucial question remains: how can we differentiate between those worth saving and those that should be allowed to fade? Angela Démarches, an economist who employs machine learning techniques to analyze the characteristics of zombie companies, notes that differences in financial structure and leverage ratios often indicate the potential for recovery. Her research indicates that the U.S. has a lower share of zombie companies compared to Europe and emerging markets, which may be attributed to the different roles of banks and capital markets in financing companies.