The Differential Impact of Leverage on Firm Investment: Evidence From Advanced and Developing Countries

Reuben Segara, University of Sydney
Jin Young Yang, Zayed University

ORCID Identifiers

0000-0002-5515-2875

Document Type

Article

Source of Publication

SSRN

Publication Date

2021

Abstract

This paper examines the differential impact of leverage on investment across firms with varying levels of growth opportunities in both advanced and developing countries. Contradictory research findings on the strength of this relationship for firms with low or high growth opportunities are reported; where even divergent results in previous studies using the same country for analysis are found. By using a multi-country framework, we confirm a negative impact of leverage on firm investment, where a stronger negative impact is consistently found for firms with low growth opportunities in both advanced and developing countries.

Disciplines

Business

Keywords

Leverage, Investment, Advanced countries, Developing countries, Corporate finance

Indexed in Scopus

no

Open Access

yes

Open Access Type

Bronze: This publication is openly available on the publisher’s website but without an open license

Link to Full Text

Share

COinS