like no other at a time of record-breaking debt levels, especially among nonfinancial firms across the world, could …-pronged approach to investigate the relationship between corporate leverage and fixed investment spending. The empirical analysis …, robust to a battery of sensitivity checks, confirm corporate leverage is highly vulnerable to disruptions in profitability …

This paper investigates the role of tax incentives towards debt finance in the buildup of leverage in the nonfinancial … corporate (NFC) sector, using a large firm-level dataset. We find that so-called debt bias is a significant driver of leverage … flow, and capital intensity. We conclude that leveling the playing field between debt and equity finance through tax policy …

countries, industries, firms, and years in leverage and debt maturity, and we also identify time factors that are common drivers …This paper studies the evolution of non-financial corporate debt among publicly listed companies in major advanced … their debt to increase their holdings of cash. In our sample of some 5,000 firms, we find substantial differences across …

balance of three forces: interest rate pass-through, risk shifting, and leverage. When banks can adjust their capital … structures, a monetary easing leads to greater leverage and lower monitoring. However, if a bank''s capital structure is fixed …

This paper explores whether corporate tax bias toward debt finance differs between banks and nonbanks, using a large … conditional leverage distribution. For nonbanks, we find a U-shaped relationship between asset size and tax responsiveness …, although this pattern does not hold universally across the conditional leverage distribution. For banks, in contrast, the tax …

leverage (Net Debt/Asset) decreased by 5.3 percentage points from the pre-shock mean of 19.6 percent, while debt maturity … businesses were most vulnerable to social distancing did not reduce leverage. We rationalize our evidence through a structural … optimal levels of corporate leverage. Model-implied optimal leverage indicates firms which did not de-lever became over …

Corporate debt in emerging markets has risen significantly in recent years amid accommodative global financial … conditions. This paper studies the relationship of leverage growth in emerging market (EM) firms to U.S. monetary conditions, and … with faster EM leverage growth during the past decade. Specifically, a 1 percentage point decline in the U.S. policy rate …