Corporate Balance Sheet Restructuring and Investment in the Euro Area
| Author | : Mr.Albert Jaeger |
| Publisher | : International Monetary Fund |
| Total Pages | : 24 |
| Release | : 2003-06-01 |
| ISBN-10 | : 9781451854039 |
| ISBN-13 | : 145185403X |
| Rating | : 4/5 (03X Downloads) |
Download or read book Corporate Balance Sheet Restructuring and Investment in the Euro Area written by Mr.Albert Jaeger and published by International Monetary Fund. This book was released on 2003-06-01 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent boom-bust cycle in the euro area's equity valuations has left nonfinancial corporations saddled with a legacy of high debt or leverage. Models of corporate investment behavior based on imperfect capital markets predict that highly leveraged balance sheets can act as a brake on investment spending. The paper's empirical analysis suggests that leverage effects on corporate investment can be substantial and persistent, particularly if leverage exceeds threshold values.
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