-pronged approach to investigate the relationship between corporate leverage and fixed investment spending. The empirical analysis …

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 …

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 …

This paper investigates how macroeconomic uncertainty affects the fiscal multiplier of public investment. In theory …. Conversely, it can increase the fiscal multiplier if public investment shocks improve private agents' expectations about future …, we find that unexpected increases in public investment have larger and longer-lasting effects on output, investment, and …

theory (Myers 1977). We also find that the effect of public investment on corporate investment is much weaker for firms that …This paper explores whether public investment crowds out or crowds in private investment. To this aim, we build a … database of about half a million firms from 49 countries. We find that the effect of public investment on corporate investment …

We contrast how monetary policy affects intangible relative to tangible investment. We document that the stock prices … total investment in firms with more intangible assets responds less to monetary policy, and that intangible investment … responds less to monetary policy compared to tangible investment. We identify two mechanisms behind these results. First, firms …

While expanding public investment can help filling infrastructure bottlenecks, scaling up too much and too fast often … public investment in a large sample of road construction projects in developing countries. Consistent with the presence of … absorptive capacity constraints, our results show a non-linear U-shaped relationship between public investment and project costs …

well as some advanced economies with a low degree of structural economic complexity, corporate investment increases when …We show that the response of firm-level investment to real exchange rate movements varies depending on the production … structure of the economy. Firms in advanced economies and in emerging Asia increase investment when the domestic currency …