Leverage and corporate investment – a cross country analysis

The paper examines the impact of a firm’s financial leverage on its investment decisions in period 2011–2019, which occurred between two crises (2008–2010 and 2020–2022) was globally marked by low interest rates high leverage. study focuses non-financial listed firms world’s top 13 largest economies consisting 11 OECD+ countries emerging nations. analysis explores relationship firm decisions, considering growth opportunities corporate risks firms, as well type economy they operate in. findings indicate that, overall, there is negative investment. In developed nations, such countries, this effect more pronounced for with limited opportunities. Contrary to existing literature, exhibit positive Specifically, China India, display stronger correlation These results suggest that debt continues have disciplining investment, even liquidity environment. However, high-growth economies, both management lending institutions show less concern regarding Lastly, finds risk has an adverse decisions. empirical highlight non-uniform nature depends firms. AcknowledgmentsThe infrastructural support provided Management Development Institute, Murshidabad, India FORE School Management, New Delhi, completing gratefully acknowledged.