 The debt of major French groups: changes and financing choicesHélène Charasson-Jasson Quarterly selection of articles - Bulletin de la Banque de France, 2017, issue 48, 73-90 Abstract: The financial crisis has generated renewed interest in the question of companies’ financing choices, and especially those of the largest firms which have greater latitude in this regard. In order to assess the debt of the major groups it is necessary to analyse (i) the relative share of equity and financial debt in financing the groups’ economic assets, (ii) their debt repayment ability and (iii) the relationship between debt and investment, as the latter allows for future income growth. We have observed an improvement in the solvency of major groups after they shored up their equity. However, they are struggling to generate a greater increase in their operating cash flow than that of their net debt. As a result, we analyse the extent to which the new debt of French groups can be used to finance investments that would boost future income. In 2016, new financial debt was used more to finance investment in acquisitions than investment in tangible and intangible assets. Keywords: financial debt; cash; equity; goodwill; repayment; ability; investment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bfr:quarte:2017:48:06 Access Statistics for this article More articles in Quarterly selection of articles - Bulletin de la Banque de France from Banque de France Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS. Contact information at EDIRC. |
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