arbiter
JournalsPricingAccount

Investment and leverage: the moderating effect of financial constraints

Quỳnh Trang Phan

Afro-Asian Journal of Finance and Accounting2025https://doi.org/10.1504/aajfa.2025.147595article
ABDC C
Weight
0.37

What the paper says

This study investigates how financial constraints affect the linkage between investment and leverage. Using the panel dataset of Vietnamese listed firms from 2007 to 2021, we found that the increase in firm investment is associated with the increase in debt use. It implies that an abundant supply of external debt will encourage firms to boost their investments. In addition, financial constraints weaken the relationship between financial leverage and firm investment. In other words, financial constraints hinder firms from increasing investment by reducing their debt levels and being more careful in selecting investment projects. The different techniques and proxies of financial constraints are employed to challenge these results.

1 citation

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.1504/aajfa.2025.147595

Or copy a formatted citation

@article{quỳnh2025,
  title        = {{Investment and leverage: the moderating effect of financial constraints}},
  author       = {Quỳnh Trang Phan},
  journal      = {Afro-Asian Journal of Finance and Accounting},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1504/aajfa.2025.147595},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Investment and leverage: the moderating effect of financial constraints

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.