How the Rise of Corporate Debt in Emerging Economies Affects Corporate Investment
Reynolds Holding
SEPTEMBER 30, 2022
Debt in emerging economies climbed to a record high of $55 trillion in 2018, illustrating the largest and fastest surge in the last five decades. Overinvestment, by contrast, is related to excess free cash flows that managers allocate to negative net-present-value projects to derive personal benefits from enlarging the firm (e.g.,
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