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 …

Firm-level investment paths are commonly characterised by periods of low or zero investment punctuated by large … investment ‘spikes’. We document that such spikes are important for understanding firm and aggregate level investment in the UK …. We show that annual variation in aggregate investment is driven by variation in the number of firms undertaking investment …

This study analyzes bank loan maturity and corporate investment linkage by using novel firm-level data covering the …-dimensional fixed effects reveal that loan maturity has a significant positive association with investment, indicating that longer debt … maturity fosters corporate investment. The results reveal that the positive linkage between longer debt maturity and investment …

We examine firms' simultaneous choice of investment, debt financing and liquidity in a large sample of US corporates … affect the corporate decisions of unconstrained firms more strongly than those of constrained firms. Investment-cash flow … sensitivities are particularly intense for unconstrained firms with high hedging needs. Investment opportunities (as proxied by Q …

We study the impact of the concentration and complexity of the banking sector on firms' financing and investment … increases investment sensitivity to aggregate productivity shocks …

This paper studies the effects of changes in uncertainty on optimal leverage and investment in a dynamic firm … the larger shocks. Initially deleveraging leads to a drop in investment. Investment recovers as entrepreneurs build up net … optimal leverage and investment dynamics. Financial innovation amplifies the effects of uncertainty shocks …

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 …

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 …

' maturity choice matters for policy: A financial reform which increases investment and output in a standard model of short …

leverage incumbents do not. This difference in investment matters because capacity installations preempt eventual entry. Indeed … findings suggest that leverage matters for industry composition, not just firm-level investment …