Taux de marge et structure financière

Jean-Bernard Chatelain

Annals of Economics and Statistics, 1999, issue 53, 127-147

Abstract: This paper shows that the firm markup, capital and the expected rate of capacity utilisation depend on its financial structure (debt/equity ratio) when irreversible investment faces uncertainty and when there is asymmetric information between the entrepreneur and lenders. Mark-up depends positively on the probability of excess demand and therefore negatively on capital. Capital increases with the markup/cost of capital ratio. A finance constraint on capital increases the probability of excess demand. Simultaneously it increases the mark-up which lower demand, so that it limits the rise of the probability of excess demand.

Date: 1999
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.jstor.org/stable/20076168 (text/html)

Related works:
Working Paper: Taux de marge et structure financière (1999)
Working Paper: Taux de marge et structure financière (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:1999:i:53:p:127-147

Access Statistics for this article

Annals of Economics and Statistics is currently edited by Laurent Linnemer

More articles in Annals of Economics and Statistics from GENES Contact information at EDIRC.
Bibliographic data for series maintained by Secretariat General () and Laurent Linnemer ().