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 …

This paper analyses the implications of corporate indebtedness for investment following large economic shocks. The … suggest that investment of high-debt firms is significantly depressed for an extended period in the aftermath of economic …% higher than that of firms with lower debt burdens. The negative impact of high debt on investment is most evident for firms …

Do firms use credit line drawdowns to finance investment? Using a unique dataset of 467 COMPUSTAT firms with credit … with theory, our results confirm that firms use drawdowns to sustain investment after an idiosyncratic liquidity shock … investment increased to 16 percent. The effect was even larger for smaller and financially constrained firms. We find only …

investment during the years in 2004-2009, and whether this impact, if it existed, differed among companies with differing … investment opportunities. The study has reveals the total debt ratio did have a negative impact on fixed investment among … Jordanian listed companies. It has also been found that the bank ratio had a stronger impact on fixed investment than the total …

. First, empirically, financial activity is lumpy, more than investment activity. Second, non-convex costs are necessary, in … the context of a dynamic investment and financing model, to rationalize this lumpiness. Two versions of the model, with …, generating financial lumpiness higher than investment lumpiness. Other predictions of the model with respect to investment and …

their investment decisions. Moreover, financial con-straints become more severe in times of restrictive monetary policy. …

This paper investigates the relationship between a firm's investment decision and its financial situation. We present a … model of investment, where the cost of external finance is increasing in the debt ratio. The model is estimated using a …