Firm Expectations and Debt Growth

Sebastian Eiblmeier

MPRA Paper from University Library of Munich, Germany

Abstract: This paper explores the link between business outlook and corporate debt. Previous research has found business outlook to be a key determinant of firm investment and firm investment to be a key reason for firms to take on debt. This implies a connection between outlook and debt. Indeed, panel regressions show a tight connection between business sentiment and firms' debt growth. A mediation analysis reveals that most of this effect runs through inventories and accounts receivable, whereas for investment only a smaller effect can be found.

Keywords: Firm expectations; corporate finance; panel regression; mediation analysis. (search for similar items in EconPapers)
JEL-codes: C23 D22 D84 D92 G31 (search for similar items in EconPapers)
Date: 2025-03-07
References: Add references at CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/128296/1/MPRA_paper_128296.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:128296

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().