L’impact de l’endettement sur la profitabilité: Une étude empirique sur données françaises en panel

The impact of debt on profitability: An empirical study on French data panel

Mazen Kebewar

MPRA Paper from University Library of Munich, Germany

Abstract: This article aims to analyze the effect of debt on the profitability. This impact can be explained by three essential theories: signaling theory, the agency costs theory and tax theory. The sample consists of a panel of 1,078 French firms, unlisted, anonymous type and Limited Liability Company; belonging to the construction sector over the period 1999-2006. We show, by using the generalized method of moments (GMM), that the debt affects negatively the profitability, not only linearly, but also, in a non-linear (concave) way. However, by detailing the analysis according to different class of size, we find that the linear negative effect and the non-linear effect are significant only in small and medium-sized enterprises (SME).

Keywords: Debts; Profitability; panel data; GMM. Endettement; profitabilité; données de panel; MMG (search for similar items in EconPapers)
JEL-codes: C33 G32 L25 (search for similar items in EconPapers)
Date: 2012-11-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/42579/1/MPRA_paper_42579.pdf original version (application/pdf)

Related works:
Working Paper: L'IMPACT DE L'ENDETTEMENT SUR LA PROFITABILITÉ UNE ÉTUDE EMPIRIQUE SUR DONNÉES FRANÇAISES EN PANEL (2012)
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:pra:mprapa:42579

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).