The Impact of Loan Capital on the Baltic Listed Companies’ Investment and Growth

Loan capital and investment made with the help of it,grant strategic competitive advantages to companies. Loancapital and investment often are the elementssupplementing each other: growth in investment results inthe growth of loan capital and vice versa. But the conflictsof interests between shareholders, managers and creditorsprecondition either underinvestment or overinvestment,which, in its turn, has a negative impact on corporatevalue. Such an ambiguous influence of loans on corporateinvestment and growth is one of relevant fields of corporatefinance governance that requires extensive analysis.