@article{scholars18186,
       publisher = {Elsevier Inc.},
            note = {cited By 0},
             doi = {10.1016/j.irfa.2023.102799},
          volume = {89},
         journal = {International Review of Financial Analysis},
           title = {Is there a CSI-leverage nexus?},
            year = {2023},
          author = {Ahmed, H. J. A. and Azad, A. S. M. S. and Poon, W. C. and Safiullah, M.},
             url = {https://www.scopus.com/inward/record.uri?eid=2-s2.0-85165354807&doi=10.1016\%2fj.irfa.2023.102799&partnerID=40&md5=aa4b51e06db056f17bcbcaf3ebed04c5},
            issn = {10575219},
        abstract = {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 during a positive economic outlook and reap the tax-shield benefit. We also find that improved household optimism over financial and business sentiments leads to future household consumption. The CSI-leverage nexus is moderated by the state of firms' financial condition, reputation, and profitability. Importantly, our results are robust to sub-sample analysis, firm-level and macroeconomic controls, econometric specifications, alternative measures of sentiment including Shiller's cyclically adjusted price-earnings ratio (i.e., CAPESH), Baker and Wurgler (2006){\^a}??s stock market sentiment index (i.e., SENTBW) and search-based uncertainty measure such as FEARS (i.e., Financial and Economic Attitudes Revealed by Search) index of Da, Engelberg, and Gao (2015). {\^A}{\copyright} 2023}
}