Leverage, Investment, and Firm Growth

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Larry Lang; Eli Ofek; Rene M. Stulz;
(1995)

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 f... View more
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