regulated firm, A key aspect of the referred relationship pertains a leverage effect according to which debt could be increased … set of local exchange carriers-LECs in the U.S. and investigate Granger causality between changes in long-term debt (NDEBT … uni-directional causality from INV to NDEBT and therefore is, to a large extent, consistent with a leverage effect and …

interest barrier. In case the debt ratio is reduced, our results present evidence for a proportional increase of firms' tax … to avoid the limited deductibility of interest expenses: They either decrease their debt ratio or split their assets to … firms is able to substitute equity for debt at low costs or expects to be able to circumvent the regulation. However …

heterogeneous tax sensitivity of firm-level investments across firm types. We econometrically test the theoretical predictions …, taking account of selection of firms into different regimes. We find important differences in the tax sensitivity of …

like no other at a time of record-breaking debt levels, especially among nonfinancial firms across the world, could …-pronged approach to investigate the relationship between corporate leverage and fixed investment spending. The empirical analysis …, robust to a battery of sensitivity checks, confirm corporate leverage is highly vulnerable to disruptions in profitability …