This paper identifies endogenous and exogenous indicators of firms' investment activity, and examine, in particular, the effect that these variables have in co-determining firms' investment decisions. Two channels of spillovers from sovereign risk to firms' capital expenditures are defined. The...

This paper identifies endogenous and exogenous indicators of firms' investment activity, and examine, in particular, the effect that these variables have in co-determining firms' investment decisions. Two channels of spillovers from sovereign risk to firms' capital expenditures are defined. The...