Is there a CSI-leverage nexus?

• Main Authors: Ahmed, H.J.A., Azad, A.S.M.S., Poon, W.C., Safiullah, M.
• Format: Article
• Published: Elsevier Inc. 2023
• Online Access: http://scholars.utp.edu.my/id/eprint/37334/; https://www.scopus.com/inward/record.uri?eid=2-s2.0-85165354807&doi=10.1016%2fj.irfa.2023.102799&partnerID=40&md5=aa4b51e06db056f17bcbcaf3ebed04c5
• Institution: Universiti Teknologi Petronas

We examine how various measures of consumer sentiment index (CSI) affect firms' debt policy decisions. Using U.S. firm-level quarterly data from 1993 to 2017, we provide a strong positive relationship between CSI measures and corporate debt policy, implying that firms use external borrowing dur...