How Long to Read Firm Leverage and Boom-Bust Cycles

How Long Does it Take to Read Firm Leverage and Boom-Bust Cycles?

It takes the average reader and 40 minutes to read Firm Leverage and Boom-Bust Cycles by Can Sever

Assuming a reading speed of 250 words per minute. Learn more

Description

This paper explores the dynamic relationship between firm debt and real outcomes using data from 24 European economies over the period of 2000-2018. Based on macro data, it shows that a rise in credit to firms is associated with an increase in employment growth in the short-term, but employment growth declines in the medium-term. This pattern remains similar, even when the changes in credit to households are accounted for. Next, using data from a large sample of firms, it shows that firm leverage buildups predict similar boom-bust growth cycles in firm employment: Firms with a larger increase in leverage experience a boost in employment growth in the short-term, but employment growth decreases in the medium-term. Relatedly, the volatility of employment growth increases in the aftermath of firm leverage buildups. Finally, this paper provides suggestive evidence on the role of a financial channel in the relationship between firm leverage buildups and employment growth. The results show that a rise in firm leverage is associated with a persistently higher debt service ratio, pointing the drag on finances. Consistently, boom-bust growth cycles in the aftermath of firm leverage buildups are not limited to employment growth, but are also pronounced for investment. Moreover, the medium-term decline in firm employment growth as predicted by leverage buildups becomes even larger if aggregate financial conditions tighten. The findings are in favor of “lean against the wind” approach in policy making.

How long is Firm Leverage and Boom-Bust Cycles?

Firm Leverage and Boom-Bust Cycles by Can Sever is 39 pages long, and a total of 10,101 words.

This makes it 13% the length of the average book. It also has 12% more words than the average book.

How Long Does it Take to Read Firm Leverage and Boom-Bust Cycles Aloud?

The average oral reading speed is 183 words per minute. This means it takes and 55 minutes to read Firm Leverage and Boom-Bust Cycles aloud.

What Reading Level is Firm Leverage and Boom-Bust Cycles?

Firm Leverage and Boom-Bust Cycles is suitable for students ages 8 and up.

Note that there may be other factors that effect this rating besides length that are not factored in on this page. This may include things like complex language or sensitive topics not suitable for students of certain ages.

When deciding what to show young students always use your best judgement and consult a professional.

Where Can I Buy Firm Leverage and Boom-Bust Cycles?

Firm Leverage and Boom-Bust Cycles by Can Sever is sold by several retailers and bookshops. However, Read Time works with Amazon to provide an easier way to purchase books.

To buy Firm Leverage and Boom-Bust Cycles by Can Sever on Amazon click the button below.