We study the relationship between corporate debt, corporate risk and firm-level investment, using a sample of 25 …,000 listed companies across 47 countries over the last two decades. We find higher leverage reduces investment but show the … leverage observed during the last decade and as a result of the Covid-19 pandemic, physical investment is expected to remain at …

credit ratings channel. Specifically, we find that firms reduce their investment and reliance on credit markets due to a …

capital, financing, and investment plans. We study whether firms faced with MCs use both non-cash (NEM) and cash generating … external funding and investment. Our findings suggest that MC firms use CEM because it directly generates cash to fund MCs …

short-term investment similarly. Second, we investigate whether perceived differences in the efficiency of the legal systems …, we find positive correlations between investment in plant and equipment and retained earnings, and negative correlations … between investment in plant and equipment and external financing. We find negative correlations between investment in short …

highlights future investment and financing challenges, especially for road transport. The methodology piloted in this study can …

firm investments, proxied by total, short- and long-term investment. The results remain robust when we control for the … shift their investment from long- to short-term investment, given their unaffected credit ratings after undesirable … sovereign rating events. Conversely, firms’ investment is unaltered by the sovereign upgrades. Our findings also confirm that …

We develop a model of investment with financial constraints and use it to investigate the relation between investment … between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to … this effect, generate realistic correlations between investment, q, and cash flow …