thresholds beyond which leverage has a negative and significant impact on investment. The investment sensitivity of debt …This paper investigates the link between corporate debt and investment for a group of five peripheral euro area … countries. Using firm-level data from 2005-2014, we postulate a non-linear corporate leverage-investment relationship and derive …

faced by corporates between investment and leverage. It also suggests that, should the estimated gap in net revenues …

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 …

We argue that the prospect of an imperfect enforcement of debt contracts in default reduces shareholder … predictions, we use a large panel of firms in 41 countries with heterogeneous debt enforcement characteristics. Consistent with … our model, we find that the relation between debt enforcement and firms' investment and risk depends on the firm …

This paper develops a model with the novel feature that firms can renegotiate debt both in and outside distress. We … show that this feature is crucial for debt renegotiation models to explain corporate policies and debt prices. Specifically … debt control premiums, and predicts realistic renegotiation timing policies. Incorporating both renegotiation events also …

We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates …, constrained firms with low hedging needs are found to employ more debt to finance their investment opportunities and build up …