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

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 …

This study revisits the relation between firms' choices of debt maturity and their investment in a dynamic world. Prior … optimal maturity by balancing these opposing forces. For the firm with average investment and financing, the agency cost …

investment. Particularly, it analyzes the investment choice in a "financing hierarchy" framework with an exogenous constraint on … debt), then the deduction of debt interest from taxes on capital income may reduce the firm's investment.This theoretical …