Debt levels have surged since the mid-1990s and have reached historic highs across the OECD. High debt levels can … create vulnerabilities, which amplify and transmit macroeconomic and asset price shocks. Furthermore, high debt levels hinder … the ability of households and enterprises to smooth consumption and investment and of governments to cushion adverse …

Debt levels have surged since the mid-1990s and have reached historic highs across the OECD. High debt levels can … create vulnerabilities, which amplify and transmit macroeconomic and asset price shocks. Furthermore, high debt levels hinder … the ability of households and enterprises to smooth consumption and investment and of governments to cushion adverse …

adverse effects of political uncertainty. Diversification increases investment relative to focused firms during the period of …

We study the performance of investments made at different points of an investment cycle. We use a large data set …

aggregate business cycle, we find that firm-level capital investment and debt issuance are procyclical, whereas net equity …How do firms vary their capital investment and financing policies in response to business cycle fluctuations within …

correlates with high corporate investment and debt issuance in year t+1, particularly for financially constrained firms. In the …We study the real effects of credit market sentiment on corporate investment and financing for a comprehensive panel of … longer term, high credit market sentiment in year t correlates with a decline in debt issuance in years t+3 and t+4; and with …

We propose a model of a firm's reversible investment decision with macroeconomic conditions based on optimal switching … business cycle which alternates via a Markov chain, and the investment and disinvestment triggers in each state are determined … endogenously. The cyclical investment which amplifies the macroeconomic shocks is examined, while the disinvestment can be either …

We analyze information production incentives for traders in financial markets, when firms condition investment …'s investment project increases with the ex ante likelihood the project will be undertaken. This generates an informational … lead to a market breakdown where information production ceases, and investment and firm value collapse. Our theory sheds …