 Le profit contre la croissance? Le dynamisme et la rentabilité des grandes entreprises cotées en FranceYann Guy and
Renaud Du Tertre
Post-Print from HAL Abstract: The increasing profits of large companies have sparked off fierce debates these past few years. Many pundits believe that extravagant dividend distribution and share redemption policies benefiting only the shareholders are likely to jeopardise investments and therefore business growth. The performance analysis of major groups listed on the French market strongly moderates this point of view. While shareholders have largely benefited from the profit distribution process, this is mostly to the detriment of creditors without really threatening free cash flow. Company management teams are looking to combine the short-term and long-term interests of their shareholders, the former relating to profit redistribution and the latter to business growth. The profitability constraint weighs heaviest on investment, notably via the leverage effect based on a gap between the economic return on capital and the long-term interest rate. In this context, the subprime crisis is likely to penalise investment even more and eventually the economic growth of large companies. Keywords: Listed company; investment; ROCE (Return on Capital Engaged); ROE (Return on Equity); leverage effect; Entreprise cotée; investissement; free cash flow; effet de levier (search for similar items in EconPapers) Published in Horizons stratégiques, 2008, 7, pp. 30-49 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00560943 Access Statistics for this paper More papers in Post-Print from HAL |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.