, in particular, long-term debt. An active, though not necessarily large, stock market and a large banking sector are also …

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 …

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 …

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 …

Do changes in the marginal tax rate of corporations affect their investment? Using a unique dataset on balance sheet … and income of firms from 1956-2008 and a new measure of exogenous changes in corporations marginal tax rate, this paper … shows that the investment response of large firms to a marginal tax cut is almost twice the response of small firms …

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 …