La structure du capital et la profitabilité : Le cas des entreprises industrielles françaises

Kebewar, Mazen (2012): La structure du capital et la profitabilité : Le cas des entreprises industrielles françaises.

Abstract

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.

L’objectif de cet article est d’analyser l’impact de la structure du capital sur la profitabilité. Cet impact peut être expliqué par trois théories essentielles: la théorie du signal, l’influence de la fiscalité et la théorie de l’agence. Nous montrons, à partir d’un échantillon de 1846 entreprises industrielles françaises prises sur la période 1999-2006, à l’aide d’une étude sur panel dynamique en utilisant la méthode des moments généralisée (GMM), que la structure du capital n’a aucune influence sur la profitabilité des entreprises françaises quelle que soit la taille de l’entreprise.

• Item Type: MPRA Paper
• English Title: Capital structure and profitability : The case of French industrial firms
• Language: French
• Keywords: Capital structure, Profitability, GMM, panel data. Structure du capital, profitabilité, GMM, données de panel
• Subjects: L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models

References

Arellano M. et Bond S. (1991): «Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations», Review of Economic Studies (58), pp. 277-297.

Arellano M. et Bover O. (1995): «Another Look at the Instrumental-Variable Estimation of Error-Components Models», Journal of Econometrics (68), pp. 29-52.

Baum C. F., Schafer D. et Talavera O. (2006): «The Effects of Short-Term Liabilities on Profitability: A Comparison of German and US Firms», Boston College Working Papers in Economics 636, Boston College Department of Economics.

Baum C. F., Schafer D. et Talavera O. (2007): «The Effects of Short-Term Liabilities on Profitability: The Case of Germany», Money Macro and Finance (MMF) Research Group Conference 2006 61, Money Macro and Finance Research Group.

Berger A. et Bonaccorsi di Patti E. (2006): «Capital structure and firm performance: A new approach to testing agency theory and an application to the banking industry», Journal of Banking & Finance (30), pp. 1065- 1102.

Blundell R. et Bond S. (1998): «Initial conditions and moment restrictions in dynamic panel data models», Journal of Econometrics (87), pp. 115-143.

Deloof M. (2003): «Does working capital management affect profitability of Belgian firms», Journal of Business Finance and Accounting (30), pp. 573–588.

Eriotis N. P., Franguoli Z. et Neokosmides Z. V. (2002): «Profit Margin and Capital Structure: An Empirical Relationship». The Journal of Applied Business Research (18), pp. 85-89.

Goddard J., Tavakoli M. et Wilson J. (2005): «Determinants of profitability in European manufacturing and services: Evidence from a dynamic panel data», Applied Financial Economics (15), pp. 1269–1282.

Himmelberg C., Hubbard G. et Palia D. (1999): «Understanding the determinants of managerial ownership and the link between ownership and performance». Journal of Financial Economics (53), pp. 353-384.

Kebewar M. (2012) : « La structure du capital et la profitabilité: Une étude empirique sur données de panel françaises», MPRA Paper 42446, University Library of Munich.

Kebewar M. (2012) : « La structure du capital et la profitabilité: Une étude empirique sur données françaises en panel », DR LEO 2012-08.

Kebewar M. (2012) : « L’impact de l'endettement sur la profitabilité: Une étude empirique sur données françaises en panel », HALSHS-00749685, VERSION 1 - 8 Nov.

Kremp E. (1995) : « Nettoyage des données dans le cas de fichiers de données individuelles », Économie et Prévision(119), pp. 169-194.

Majumdar S. et Chhibber P. (1999): «Capital structure and performance: Evidence from a transition economy on an aspect of corporate governance», Public Choice (98), pp. 287-305.

Margaritis D. et Psillaki M. (2007): «Capital Structure and Firm Efficiency», Journal of Business Finance & Accounting (34), pp. 1447-1469.

Margaritis D. et Psillaki M. (2010): «Capital structure, equity ownership and firm performance», Journal of Banking & Finance (34), pp. 621- 632.

Mesquita J.M.C. et Lara J.E. (2003): «Capital structure and profitability: the Brazilian case», Academy of Business and Administration Sciences Conference, Vancouver, July 11-13.

Modigliani F. et Miller M.H. (1958): «The Cost of Capital, Corporate Finance, and the Theory of Investment», American Economic Review (48), pp. 261-297.

Ngobo P.V. et Capiez A. (2004) : «Structure du capital et performance de l’entreprise : le rôle modérateur des différences culturelles», Congrès de l’Association Internationale de Management Stratégique (AIMS), Le Havre.

Nucci F., Pozzolo A. et Schivardi F. (2005): «Is firm’s productivity related to its financial structure? Evidence from microeconomic data» (Working Paper). Italy: Banca d’Italia, Research Department.

Nunes P. J. M., Serrasqueiro Z. M. et Sequeira T. N. (2009): «Profitability in Portuguese service industries: a panel data approach», The Service Industries Journal (29), pp. 693-707.

Rao N. V., Al-Yahyaee K. H. M. et Syed L. A. M. (2007): «Capital structure and financial performance: evidence from Oman», Indian Journal of Economics and Business (7), pp. 1-14.

Roodman D. (2006): «How to do xtabond2: An Introduction to Difference and System GMM in Stata», Center for Global Development, Working Paper Number 103.

Simerly R. et LI M. (2000): «Environmental dynamism, capital structure and performance: a theoretical integration and an empirical test», Strategic Management Journal (21), pp. 31-49.

Weill L. (2008): «Leverage and Corporate Performance: Does Institutional Environment Matter? », Small Business Economics (30), pp. 251-265.

Zeitun R. et Tian G. (2007): «Capital structure and corporate performance evidence from Jordan», Australasian Accounting Business & Finance Journal (1), pp. 40-53.