Leverage, Growth Opportunities, and Credit Risk: Evidence from Italian Innovative SMEs

The link between leverage and growth opportunities has been a topic issue in corporate finance for many years. present paper aims to investigate the credit risk, leverage, sample of Italian innovative small-and-medium enterprises (SMEs), given lack empirical literature on subject. results WLS model confirm relationship investments, risk highlighted by literature—in particular, negative emerges investments while analysis reveals positive liquidity. Furthermore, consideration significant economic differences existing regional macro-areas into which Italy is divided, firms were classified geographical areas. show that northeast area region characterised most reliable results. organised as follows: Introduction provides review theoretical risk; Materials Methods explain model; Results regression; Discussions contain main finding analysis; Conclusions summarize study.