by curbing risk-taking incentives, the higher the leverage the bank is permitted to take on. Consequently, the risk …

attitudes towards financing (Berkshire eschews debt that private equity uses maximally); management (Berkshire believes in …

underlying mechanisms differ. The tax shield incentivises debt financing as it reduces tax payments to the government. The …Systemically important banks are subject to at least two departures from the neutrality of debt versus equity financing …: the tax deductibility of interest payments and implicit funding subsidies. This paper fills a gap in the literature by …

financial instruments used. Some are consistent with existing theory, while others are understudied. Many leverage changes are …). This implies a lower frequency of proactive leverage adjustments than indicated by prior research using accounting data …

Firms' contractual relations with a state may give lenders a positive signal and facilitate access to debt. This paper … studies the impact of public procurement contracts on ftrms' access to debt using an extensive survey of Russian manufacturing … short-term debt twice as much as revenue from private contracts. Long-term debt is not affected by public contracts …

We study the leverage of U.S. firms over their life cycles and the connection between firm leverage, firm growth, and ….S. Census Bureau’s Longitudinal Business Database for the period 2005–12. Public and private firms exhibit different leverage … dynamics over their life cycles. Firm age and size are systematically related to leverage for private firms but not for public …

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 …