1 option
Leverage, Investment, and Firm Growth / Larry Lang, Eli Ofek, Rene M. Stulz.
- Format:
- Book
- Author/Creator:
- Lang, Larry.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w5165.
- NBER working paper series no. w5165
- Language:
- English
- Subjects (All):
- Business enterprises--Finance.
- Business enterprises.
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 1995.
- Cambridge, Mass. : National Bureau of Economic Research, 1995.
- Summary:
- We show that there is a negative relation between leverage and future growth at the firm level and, for diversified firms, at the segment level. Further, this negative relation between leverage and growth holds for firms with low Tobin's q, 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.
- Notes:
- Print version record
- July 1995.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.