Population Aging and Corporate Leverage
By Xingshen Li, Kexin Jiang, Wei Li & Xiaofen Tan
This study examines the relationship between corporate leverage and population aging. Based on a panel dataset of global listed firms from 2000 to 2021, we find that population aging at the country level reduces a firm’s leverage. This effect is mediated through mechanisms that influence operational pressures and asset prices. Further analysis reveals that the adverse impact of population aging on corporate leverage is more pronounced among firms with higher financial risk, especially in those industries with more competitive markets and higher labor intensity. This study provides new evidence on the heterogeneous effects of population aging on corporate financing decisions.
Source SSRN
