Publication:
Corporate Debt Overhang and Investment: Firm-Level Evidence

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dc.contributor.authorBorensztein, Eduardo
dc.contributor.authorYe, Lei Sandy
dc.date.accessioned2018-08-15T20:23:41Z
dc.date.available2018-08-15T20:23:41Z
dc.date.issued2018-08
dc.description.abstractThis paper investigates empirically the linkages between corporate debt overhang and investment activity at the firm level for a cross section of large-sized emerging market and developing economies. It analyzes the extent to which investment may be discouraged by high levels of debt that put at risk future profits, as well as firm dimensions that may sharpen the debt-investment link. Using balance sheet data from a broad set of emerging market and developing economy firms, the analysis suggests that corporate debt overhang imposes a sizable effect on investment at the firm level. This linkage is more pronounced for large firms and highly leveraged firms. The analysis also finds evidence of a nonlinear effect, in which debt overhang discourages investment more severely under high levels of indebtedness.en
dc.identifierhttp://documents.worldbank.org/curated/en/481931534337937622/Corporate-debt-overhang-and-investment-firm-level-evidence
dc.identifier.doi10.1596/1813-9450-8553
dc.identifier.urihttps://hdl.handle.net/10986/30243
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8553
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectCORPORATE DEBT
dc.subjectINVESTMENT
dc.subjectEMERGING MARKET ECONOMIES
dc.subjectDEVELOPING ECONOMIES
dc.titleCorporate Debt Overhang and Investmenten
dc.title.subtitleFirm-Level Evidenceen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleCorporate Debt Overhang and Investment: Firm-Level Evidence
okr.date.disclosure2018-08-15
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/481931534337937622/Corporate-debt-overhang-and-investment-firm-level-evidence
okr.guid481931534337937622
okr.identifier.doi10.1596/1813-9450-8553
okr.identifier.externaldocumentum090224b085f7322e_1_0
okr.identifier.internaldocumentum30349544
okr.identifier.reportWPS8553
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/481931534337937622/pdf/WPS8553.pdfen
okr.statistics.combined3402
okr.statistics.dr481931534337937622
okr.statistics.drstats2647
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicPrivate Sector Development::Emerging Markets
okr.topicPrivate Sector Development::Private Sector Economics
okr.unitDevelopment Prospects Group, Development Economics
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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