López-de-Foronda, Óscar; López-de-Silanes, Florencio; … - In: BRQ Business Research Quarterly 22 (2019) 2, pp. 96-104
The aim of this paper is to analyse the influence of financial system liquidity and corporate leverage on a firm …'s overinvestment. We posit that when external funds are easily available, as in expansionary monetary periods, debt loses its … traditional role as a managerial control mechanism. Instead, the supply of systemic liquidity results in corporate leverage …