Barrela, Rodrigo; López-García, Paloma; Setzer, Ralph - 2022
suggest that investment of high-debt firms is significantly depressed for an extended period in the aftermath of economic … crises. In the four years after a negative economic shock, the cumulative loss of capital of high-debt firms is around 15 …% higher than that of firms with lower debt burdens. The negative impact of high debt on investment is most evident for firms …