Risk spillover effect of resident leverage on corporate debt

Qiongxin Zhang, Kaiming Chen and Fangfang Zhang

Finance Research Letters, 2024, vol. 65, issue C

Abstract: Using panel data from 2008 to 2019, this study analyzes the risk spillover effect of resident leverage on the corporate sector. Thus, the results indicate that increasing resident leverage does not create a more favorable macroeconomic environment for an enterprise to deleverage. Instead, it worsens the debt risk of the enterprise through mechanisms such as weakening corporate solvency, changing the corporate debt maturity structure, and enhancing the financial trend.

Keywords: Resident leverage; Corporate debt; Risk spillover effect (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:65:y:2024:i:c:s1544612324005816

DOI: 10.1016/j.frl.2024.105551

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