Abstract
This paper explores the link between financial leverage and corporate investment in the context of an emerging market. We use a panel data set of firms listed on the Ho Chi Minh City stock exchange over the period 2006–2015. We employ a fixed effects econometric technique of panel data analysis. Consistent with previous studies, our results reveal a negative link between leverage and investment. This implies that debt disciplinarily constrains corporate investment. However, contrary to previous studies, we find that leverage has a stronger negative impact on corporate investment for firms with high growth opportunities than for firms with low growth opportunities. This finding has relevant implications in the context of emerging markets.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
