On the investment sensitivity of debt under uncertainty

Christopher Baum, Mustafa Caglayan () and Oleksandr Talavera ()

Economics Letters, 2010, vol. 106, issue 1, 25-27

Abstract: We investigate the impact of debt on a panel of U.S. manufacturing firms' capital investment behavior as the underlying firm-specific and market-level uncertainty changes. Our estimates show that the influence of leverage on capital investment may be stimulating or mitigating depending on the effects of uncertainty.

Keywords: Capital; investment; Leverage; Uncertainty (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (27)

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Related works:
Working Paper: On the Investment Sensitivity of Debt under Uncertainty (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:106:y:2010:i:1:p:25-27

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