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Leverage shocks : firm-level evidence on debt overhang and investment
Cevik, Serhan; Miryugin, Fedor - 2020
-pronged approach to investigate the relationship between corporate leverage and fixed investment spending. The empirical analysis …
Persistent link: https://www.econbiz.de/10012486107
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Firm Investment and Balance-Sheet Problems in Japan
Sekine, Toshitaka - 1999
This paper investigates whether balance-sheet conditions of firms and their main banks matter for firm investment … facing liquidity constraints; these firms’ balance-sheet conditions (the debt asset ratios) affected their investment from …-sheet conditions constrained these firms’ investment from about 1993. These findings highlight the potential macroeconomic impact and …
Persistent link: https://www.econbiz.de/10014400196
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Corporate Balance Sheet Restructuring and Investment in the Euro Area
Jaeger, Albert - 2003
legacy of high debt or leverage. Models of corporate investment behavior based on imperfect capital markets predict that … highly leveraged balance sheets can act as a brake on investment spending. The paper''s empirical analysis suggests that … leverage effects on corporate investment can be substantial and persistent, particularly if leverage exceeds threshold values …
Persistent link: https://www.econbiz.de/10014403893
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The COVID-19 impact on corporate leverage and financial fragility
Haque, Sharjil Muktafi; Varghese, Richard - 2021
We study the impact of the COVID-19 recession on capital structure of publicly listed U.S. firms. Our estimates suggest leverage (Net Debt/Asset) decreased by 5.3 percentage points from the pre-shock mean of 19.6 percent, while debt maturity increased moderately. This de-leveraging effect is...
Persistent link: https://www.econbiz.de/10012796218
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The riskiness of credit allocation and financial stability
Brandao Marques, Luis; Chen, Qianying; Raddatz, Claudio E. - 2019
We explore empirically how the time-varying allocation of credit across firms with heterogeneous credit quality matters for financial stability outcomes. Using firm-level data for 55 countries over 1991-2016, we show that the riskiness of credit allocation, captured by Greenwood and Hanson...
Persistent link: https://www.econbiz.de/10012103777
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Corporate tax reform : from income to cash flow taxes
Carton, Benjamin; Fernandez-Corugedo, Emilio; Hunt, … - 2019
boost afforded by the tax and maintain domestic investment-saving equilibrium. The paper demonstrates that spillover effects … from the tax reform are positive in the long run as other countries' exports benefit from additional investment in the …
Persistent link: https://www.econbiz.de/10012001561
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Leverage : a broader view
Kumar, Manmohan S.; Alam, Zohair - 2018
Traditional measures of leverage in the financial system tend to reflect bank balance sheet data. The paper argues that these traditional, bank-centric measures should be augmented by considering pledged collateral in the financial system since pledged collateral provides a measure of an...
Persistent link: https://www.econbiz.de/10011848165
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Managerial Entrenchment and the Choice of Debt Financing
Sy, Amadou N. R. - 1999
The paper analyzes the choice between public and private debt by an entrenched manager. The model shows that when the firm’s credit risk is low, management issues public bonds because of the value gains from increased flexibility rather than reduced restrictions and monitoring. In fact,...
Persistent link: https://www.econbiz.de/10014400172
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Capital Structures and Portfolio Composition During Banking Crisis : Lessons from Argentina 1995
Ramos, Alberto M. - 1998
This paper constructs a theoretical framework that rationalizes banks’ short- and long-run adjustment dynamics—in portfolio composition and in the capital structure—following a period of financial distress. The model captures stylized facts about banks’ behavior following a shock to the...
Persistent link: https://www.econbiz.de/10014400665
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The Effect of Expected Effective Corporate Tax Rateson Incremental Financing Decisions
Gropp, Reint - 1997
This paper uses U.S. panel data to estimate the effect of expected effective corporate tax rates on firm’s leverage. The paper directly estimates expected corporate tax rates using rational expectations. The estimated measures of the expected effective tax rates of firms are related to a...
Persistent link: https://www.econbiz.de/10014400818