This paper investigates empirically the linkages between corporate debt overhang and investment activity at the firm … investment may be discouraged by high levels of debt that put at risk future profits, as well as firm dimensions that may sharpen … the debt-investment link. Using balance sheet data from a broad set of emerging market and developing economy firms, the …

The aim of this paper is to ascertain corporate investment reaction in bank-dependent companies in times of crisis. Our … investigation covers the differences in corporate investment reaction due to the global financial crisis (GFC) of 2007-2009 and the … corporate investment, but a statistical significance was found only for the GFC period. We also found a positive relationship …

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 …

generates novel implications for the impact of renegotiable debt on covenant and investment policies …

investment and steepened term structure as the transmission mechanisms. …

investment and steepened term structure as transmission mechanisms. …

We show that firms’ debt maturity structure plays an important role in investment above and beyond that of leverage … invest more and prefer to use long-term debt to free up funds for future investment. This mechanism is supported by the data …. Our findings highlight the importance of debt maturity structure in understanding corporate investment decisions …

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 … thresholds beyond which leverage has a negative and significant impact on investment. The investment sensitivity of debt …