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' investment, growth and financial constraints. Combining propensity score matching with a difference-in-differences estimator, our …
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We show that creditors do not just ensure that inefficient investment is not undertaken, but also do not preclude … efficient investment. Examining what happens following a debt covenant violation, a situation through which creditors acquire … some control rights over the firm, we find that investment declines when the firm has few growth opportunities but it may …
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