@misc{33620,
title = {Research Insights: How Does Debt Affect Corporate Investment in Periods of High Uncertainty?},
author = {Heresi, Rodrigo and Powell, Andrew},
year = {2023},
doi = {10.18235/0004887},
abstract = {Investment rates are substantially reduced for firms with higher leverage and higher risk of default. For firms with low risk, higher leverage does not reduce investment; in fact, in these cases we find that higher debt may be associated with higher investment. Economic crises provoke the most problematic debt-overhang problems, and low investment rates can persist for two to three years after the recession has ended.},
url = {https://doi.org/10.18235/0004887}
}