Please use this identifier to cite or link to this item:
https://hdl.handle.net/10316/95680
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Albuquerque, Bruno | - |
dc.date.accessioned | 2021-08-26T10:11:41Z | - |
dc.date.available | 2021-08-26T10:11:41Z | - |
dc.date.issued | 2021-08-23 | - |
dc.identifier.uri | https://hdl.handle.net/10316/95680 | - |
dc.description.abstract | Does corporate debt overhang affect investment over the medium term? To uncover this association, I measure debt overhang with a concept of debt accumulation or debt boom, and combine leverage with liquid assets to capture financial constraints. Using a large US firm-level panel over 1985Q1-2019Q1, I find that debt overhang leads financially vulnerable firms to cut permanently back on investment: a 10 p.p. increase in the three-year change in the leverage ratio is associated with lower investment growth of 5 p.p. after five years compared to the most resilient firms. I also find that vulnerable firms experience weaker intangible capital growth in the aftermath of debt booms. Finally, I find that general equilibrium effects dominate, stressing the risk that firm-specific debt booms in a subset of firms may spill over to the rest of the economy. | pt |
dc.language.iso | eng | pt |
dc.relation.ispartofseries | CeBER Working Paper 2021-08; | - |
dc.rights | openAccess | pt |
dc.subject | Corporate debt booms; Firm investment; Financial constraints; Local projections | pt |
dc.title | Corporate debt booms, financial constraints, and the investment nexus | pt |
dc.type | workingPaper | pt |
degois.publication.location | https://www.uc.pt/en/uid/ceber/working-paper?key=fafdfeea | pt |
dc.relation.publisherversion | https://www.uc.pt/en/uid/ceber/working-paper?key=fafdfeea | pt |
dc.peerreviewed | yes | pt |
dc.date.embargo | 2021-08-23 | * |
uc.date.periodoEmbargo | 0 | pt |
item.fulltext | Com Texto completo | - |
item.openairecristype | http://purl.org/coar/resource_type/c_18cf | - |
item.grantfulltext | open | - |
item.languageiso639-1 | en | - |
item.openairetype | workingPaper | - |
item.cerifentitytype | Publications | - |
Appears in Collections: | I&D CeBER - Working Papers |
Files in This Item:
File | Description | Size | Format | |
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wp-ceber-2021-8-2.pdf | Corporate debt booms, financial constraints, and the investment nexus | 1.9 MB | Adobe PDF | View/Open |
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