Baum, Christopher; Caglayan, Mustafa; Talavera, Oleksandr - Department of Economics, Boston College - 2008
We investigate the impact of debt on a panel of U.S. manufacturing firms' capital investment behavior as the underlying … firm-specific and macroeconomic uncertainty changes. Our estimates show that the influence of leverage on capital … investment may be stimulating or mitigating depending on the effects of uncertainty. …