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Article

Debt Overhang, Gazelles’ Growth, and Fiscal Policy: A Note from the Quantile Regression Approach

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Finance, Money and Public Administration Department, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iași, 700506 Iași, Romania
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Statistics and Econometrics Department, Faculty of Economic Cybernetics, Statistics and Informatics, Bucharest University of Economic Studies, 010552 București, Romania
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Faculty of Psychology and Educational Sciences, Alexandru Ioan Cuza University of Iași, 700506 Iași, Romania
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Management Information Systems Department, Faculty of Accounting Management Information Systems, Bucharest University of Economic Studies, 010552 București, Romania
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Author to whom correspondence should be addressed.
Academic Editor: Klaus Reiner Schenk-Hoppé
Sustainability 2021, 13(18), 10457; https://doi.org/10.3390/su131810457
Received: 15 August 2021 / Revised: 13 September 2021 / Accepted: 16 September 2021 / Published: 20 September 2021
The paper aims to examine the relationship between leverage and firm growth and the impact of fiscal policy on this relationship using a panel data quantile regression approach. Employing a sample of gazelles from emerging Europe for the 2006–2014 period, we find that debt overhang negatively affects firm growth only for the lower growth quantiles. In addition, we found that the negative effect is higher for the gazelles located in countries with lower corporate income effective tax rates. However, for the higher growth quantiles, the impact of debt on firm growth is positive and statistically significant. Our results reconcile the mixed results of the previous studies and have practical implications for financing strategies in emerging markets. View Full-Text
Keywords: leverage; sales growth; gazelles; emerging economies; fiscal policy; quantile regression leverage; sales growth; gazelles; emerging economies; fiscal policy; quantile regression
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MDPI and ACS Style

Anton, S.G.; Onofrei, M.; Gogu, E.; Neculau, B.C.; Mihai, F. Debt Overhang, Gazelles’ Growth, and Fiscal Policy: A Note from the Quantile Regression Approach. Sustainability 2021, 13, 10457. https://doi.org/10.3390/su131810457

AMA Style

Anton SG, Onofrei M, Gogu E, Neculau BC, Mihai F. Debt Overhang, Gazelles’ Growth, and Fiscal Policy: A Note from the Quantile Regression Approach. Sustainability. 2021; 13(18):10457. https://doi.org/10.3390/su131810457

Chicago/Turabian Style

Anton, Sorin G., Mihaela Onofrei, Emilia Gogu, Bogdan C. Neculau, and Florin Mihai. 2021. "Debt Overhang, Gazelles’ Growth, and Fiscal Policy: A Note from the Quantile Regression Approach" Sustainability 13, no. 18: 10457. https://doi.org/10.3390/su131810457

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