The DOI matches its Crossref record; 2 of the 2 references it cites were found in a registry or an index.
Leverage, investment, and firm growth
Open accessAbstract
We show that there is a negative relation between leverage and future growth at the firm level and, for diversified firms, at the business segment level. This negative relation between leverage and growth holds for firms with low Tobin's q ratio, but not for high-q firms or firms in high-q industries. Therefore, leverage does not reduce growth for firms known to have good investment opportunities, but is negatively related to growth for firms whose growth opportunities are either not recognized by the capital markets or are not sufficiently valuable to overcome the effects of their debt overhang.
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Citations
Cites
Determinants of corporate borrowing
Myers, S. C. (1977) · Journal of Financial Economics · doi:10.1016/0304-405x(77)90015-0 · Cited by 13,169
Financing Constraints and Corporate Investment
Fazzari, S. M., Hubbard, R. G., Petersen, B. C., Blinder, A. S., & Poterba, J. M. (1988) · Brookings Papers on Economic Activity · doi:10.2307/2534426 · Cited by 5,574
Cited by
A Survey of Corporate Governance
Shleifer, A., & Vishny, R. W. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb04820.x · Cited by 16,243
Financial Constraints, Investment, and the Value of Cash Holdings
Denis, D. J., & Sibilkov, V. (2010) · Review of Financial Studies · doi:10.1093/rfs/hhp031 · Cited by 1,377
Determinants of capital structure of Chinese-listed companies
Chen, J. J. (2004) · Journal of Business Research · doi:10.1016/s0148-2963(03)00070-5 · Cited by 853
Dynamic panels with threshold effect and endogeneity
Seo, M. H., & Shin, Y. (2016) · Journal of Econometrics · doi:10.1016/j.jeconom.2016.03.005 · Cited by 698
The impact of leverage on firm investment: Canadian evidence
Aivazian, V. A., Ge, Y., & Qiu, J. (2005) · Journal of Corporate Finance · doi:10.1016/s0929-1199(03)00062-2 · Cited by 650
Metadata
- Authors
- Lang, L., Ofek, E., & Stulz, R.
- Venue
- Journal of Financial Economics
- Publisher
- Elsevier BV
- Published
- 1996-01
- Volume
- 40
- Issue
- 1
- Pages
- 3-29
- ISSN
- 0304-405X (ISSN-L)
- OpenAlex
- W3122136141
- Cited by
- 1,302
- References
- 2
- FWCI
- 65.30
- Type
- journal article
- Language
- en
- Open access
- hybrid
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- Lang, L., Ofek, E., & Stulz, R. (1996). Leverage, investment, and firm growth. Journal of Financial Economics. https://doi.org/10.1016/0304-405x(95)00842-3
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
