The role of regulatory barriers in inhibiting entrepreneurship, investment and employment creation is an old topic in … aggregate investment rates (roughly, factor demand) or GDP growth conditional on investment rates (roughly, factor productivity …, investment rates accelerate by about 0.6 percentage points in the subsequent year …

We show that creditors do not just ensure that inefficient investment is not undertaken, but also do not preclude … efficient investment. Examining what happens following a debt covenant violation, a situation through which creditors acquire … some control rights over the firm, we find that investment declines when the firm has few growth opportunities but it may …