This paper investigates the likelihood of corporate insolvency and the potential implications of debt overhang of non … investment, it examines the potential impact of higher debt levels on investment during the recovery. Against this background … potentially affect otherwise viable firms, and to lessen the risk of debt-overhang, which could slow down the speed of recovery. …

While China’s overall debt-to-GDP ratio is not particularly high, its non-financial corporate debt relative to GDP is … higher than in other major economies. State-owned enterprises account for over three quarters of that debt with a size … exceeding GDP. This paper provides insights into the size of debt, leverage and debt service burden by various non-financial SOE …

Using a pan-European data set of 8.5 million firms, this paper finds that firms with high debt overhang invest … same time, the positive impact of a marginal increase in debt on investment efficiency disappears if firm debt is already … of the disciplining role of debt, as well as with models highlighting the negative link between agency problems at firms …

. The proportion of leveraged corporate debt exposed to such downside risks has become a key concern. This paper assesses … the magnitude of indebtedness of leveraged non-financial companies and identifies the share of debt related to the … riskiest firms. A stress test analysis examines the sensitivity of corporate debt to potential macroeconomic and financial …

provides evidence of such manipulation of debt location. The analysis is based on a large sample of firm-level data from the … ORBIS database. By comparing the indebtedness of MNE entities with similar characteristics but different debt shifting … opportunities, the analysis suggests that a 1 percentage point higher tax rate is associated with 1.3% higher third-party debt. This …