2012/12/30 by Mazen Kebewar, Kebewar, Mazen
Economics, Econometrics and Finance · #FOS: Economics and business #Firm Innovation and Growth #General Finance (q-fin.GN) #q-fin.GN
paper · pdf · doi:10.48550/arxiv.1212.6795
arxiv created 2012/12/30 · openalex publication_date 2012/12/30 · arxiv updated 2013/01/01 · openalex created_date 2021/02/01 · openalex updated_date 2026/07/28
The objective of this article is to analyze the impact of capital structure on profitability. This impact can be explained by three essential theories: signaling theory, tax theory and the agency costs theory. A sample of 1846 French industrial firms are taken over the period 1999-2006, as a dynamic panel study by using the generalized method of moments (GMM). We show that capital structure has no influence on the profitability of French firms, regardless the size of the company.