that firm leverage buildups predict similar boom-bust growth cycles in firm employment: Firms with a larger increase in … leverage experience a boost in employment growth in the short-term, but employment growth decreases in the medium …-term. Relatedly, the volatility of employment growth increases in the aftermath of firm leverage buildups. Finally, this paper …

-level data from Denmark, this paper argues that the high leverage, which was build up by some firms before the crisis … significant effect of high leverage is present also in subsamples defined by industry, liquidity ratio, and geography. The effect … a separate leverage or 'balance sheet' channel in addition to the effects of other variables conventionally included in …