their investment more after the crisis. This negative effect is stronger for firms linked to weak banks with exposures to … corporate investment. …

their investment more after the crisis. This negative effect is stronger for firms linked to weak banks with exposures to … corporate investment. …

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 …

We quantify the role of financial leverage behind the sluggish post-crisis investment performance of European firms. We … investment more after the crisis. This negative effect is stronger for firms holding short-term debt in countries with sovereign … stress, consistent with rollover risk being an important channel influencing investment. The negative effect of firm leverage …

We quantify the role of financial factors that have contributed to sluggish investment in Europe in the aftermath of … investment in the aftermath of the crisis can be linked to higher leverage, increased debt service, and having a relationship … with a weak bank--once we condition on aggregate demand shocks. Second, the relation between leverage and investment …

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 …