TY  - GEN
AU  - Heresi, Rodrigo
AU  - Powell, Andrew
TI  - Research Insights: How Does Debt Affect Corporate Investment in Periods of High Uncertainty?
PY  - 2023
Y1  - 2023/05/05
DO  - 10.18235/0004887
AB  - 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.
UR  - https://doi.org/10.18235/0004887
ER  -