TY  - RPRT
        AU  - Coricelli, Fabrizio
AU  - Driffield, Nigel
AU  - Pal, Sarmistha
AU  - Roland, Isabelle
        TI  - Excess Leverage and Productivity Growth in Emerging Economies: Is There A Threshold Effect?
        PY  - 2010/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4834
        UR  - https://www.iza.org/publications/dp4834
        AB  - The paper examines the relationship between leverage and growth in a group of emerging central and eastern European countries, who are at different levels of financial market development. We hypothesize a non-linear relationship in that moderate leverage could boost growth while very high leverage could lower it by increasing the likelihood of financial distress and bankruptcy. Estimates of a Threshold model confirm the non-linear relationship in our sample, after controlling for various firm, industry and financial market characteristics. We also endogenously determine a threshold level of leverage beyond which further increases in leverage could lower TFP growth.
        KW  - bank efficiency
KW  - market capitalization
KW  - TFP growth
KW  - Threshold model
KW  - non-linear relationship
KW  - excess leverage
KW  - transition experience
        ER  -