After a steady increase following the global financial crisis, private nonfinancial sector leverage rose further during … empirical relationships between increased leverage, financial conditions, and macro-financial stability in a sample of major … advanced and emerging market economies. We find that loose financial conditions contribute to leverage buildups and generate an …

-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 …, for both small and medium-sized enterprises and larger firms, with its effect accounting for about a quarter of leverage …

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 …

Traditional measures of leverage in the financial system tend to reflect bank balance sheet data. The paper argues that … suggests that a broader view on leverage will enhance our understanding of global systemic risk, and complement the theoretical … work in this field by providing a link from micro-level leverage data to macro aggregates such as credit to the economy …