The School of Economics and Management of the University of Cyprus had the honour to host a public lecture on 04/06/2024 by the internationally renowned Professor of Finance of New York University, Edward I. Altman. The event was held at the University of Cyprus Ceremonial Hall in the presence of academics, students, and many professionals from the banking and finance sector.

In his introductory speech, the Dean of the School of Economics and Management, Professor Sofronis Clerides, referred to the rich biography of the speaker and the significant impact of his work in both the academic and professional fields. He also stressed the importance of holding such events, which are part of the University of Cyprus’ effort to act as a bridge between the international scientific community and the local community. In this way, the dissemination of scientific knowledge is supported and students, professionals and the general public are given the opportunity to meet leading international speakers.

Professor Edward I. Altman is known worldwide for creating the Z-score model, which has been instrumental in the way we understand and evaluate the financial health of a company. In his talk, Prof. Altman presented a new study entitled “Global Zombie Companies: Measurements, Determinants, and Outcomes,” which was published this year in the leading journal Journal of International Business Studies.The study addresses the phenomenon of “zombie companies”-companies that, despite being financially unsustainable, continue to operate, usually due to favorable credit conditions and other external factors. Prof. Altman explained the factors that keep these firms afloat, the risks involved, and the impact of their existence on economic stability, resource allocation, and long-term growth.

A discussion followed, with Professor Altman answering questions and comments from the audience. The discussion among the attendees continued in a more relaxed setting at the event that followed in the courtyard of the auditorium.