29 research outputs found
The effect of debt on corporate profitability : Evidence from French service sector
Current study aims to provide new empirical evidence on the impact of debt on
corporate profitability. This impact can be explained by three essential
theories: signaling theory, tax theory and the agency cost theory. Using panel
data sample of 2240 French non listed companies of service sector during
1999-2006. By utilizing generalized method of moments (GMM) econometric
technique on three measures of profitability ratio (PROF1, PROF2 and ROA), we
show that debt ratio has no effect on corporate profitability, regardless of
the size of company (VSEs, SMEs or LEs
The Political Economy of FDI flows into Developing Countries: Does the depth of International Trade Agreements Matter?
There is considerable debate whether the domestic political institutions
(specifically, the country s level of democracy) of the host developing country
toward foreign investors are effective in establishing the credibility of
commitments are still underway, researchers have also analyzed the effect of
international institutions such as (GATT-WTO) membership and Bilateral
Investment treaties (BIT) in their role of establishing the credibility of
commitment to attract foreign investments. We argue that there are qualitative
differences among various types of trade agreements and full-fledged trade
agreements (FTA-CU) provide credibility to foreign investors and democracy
level in the host country conditions this effect whereas the partial scope
agreements (PSA) are not sufficient in providing credibility of commitments and
not moderated by democracy. This paper analyses the impact of heterogeneous
TAs, and their interaction with domestic institutions, on FDI inflows.
Statistical analyses for 122 developing countries from 1970 to 2005 support
this argument. The method adopted relies on fixed effects estimator which is
robust to control endogeneity on a large panel dataset. The strict erogeneity
of results by using a method suggested by Baier and Bergstrand (2007) and no
feedback effect found in sample. The results state that (1) More the FTA-CU
concluded, larger the amount of FDI inflows are attracted into the developing
countries and PSA are insignificant in determining the FDI inflow; (2) FTA CU
are complementary to democratic regime whereas the conditional effect of PSA
with democracy on levels of FDI inflows is insignificant.Comment: University of Orleans (France
La structure du capital et la profitabilité : Le cas des entreprises industrielles françaises
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
La structure du capital et la profitabilité Une étude empirique sur données de panel françaises
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. From a sample of 9136 firms distributed on seven sectors taken over the
period 1999-2006 by means of a study on dynamic panel by using the generalized method of
moments (GMM), we show that there exists heterogeneity of behavior between sectors
regarding the impact of capital structure on profitability. The empirical analysis allowed us to
distinguish three different groups of sectors: for the first group (industry, energy and service),
the capital structure has no impact on profitability. The second group, containing only the
transport sector, is the group where the debt affects negatively the profitability in a linear
way. The last group (agro-food, construction and trade) is characterized by the presence of a
negative effect in a linear and nonlinear way
The effect of debt on corporate profitability: Evidence from French service sector
Current study aims to provide new empirical evidence on the impact of debt on corporate profitability. This impact can be explained by three essential theories: signaling theory, tax theory and the agency cost theory. Using panel data sample of 2240 French non listed companies of service sector during 1999-2006. By utilizing generalized method of moments (GMM) econometric technique on three measures of profitability ratio (PROF1, PROF2 and ROA), we show that debt ratio has no effect on corporate profitability, regardless of the size of company (VSEs, SMEs or LEs)
La structure du capital et la profitabilité : Le cas des entreprises industrielles françaises
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
L’ENDETTEMENT AFFECTE-T-IL LA PROFITABILITÉ? LE CAS DES FIRMES AGRO-ALIMENTAIRES FRANÇAISES
This article aims to expand existing empirical knowledge on the impact of debt level on profitability of companies. We analyze a sample of 568 unlisted French companies (Agro-food sector) spanning over a period of 1999 to 2006. We show, by using the generalized method of moments (GMM), that debt affects negatively on the profitability, but this effect is negligible and sometimes insignificant according to the ratio of profitability used (Prof1, Prof2 or ROA). Furthermore, we find existence of non-linear relationship (concave curve) between level of debt and profitability, but this non-linear impact is validated only in the case of very small enterprises
Does debt affect profitability? An empirical study of French trade sector
This article aims to expand existing empirical knowledge on the impact of debt level on profitability of companies. We analyze a sample of an unbalanced panel of 2325 unlisted French companies of trade sector spanning over a period of 1999 to 2006. By using the generalized method of moments (GMM), we show that the debt affects negatively the profitability, not only linearly, but also, in a non-linear (concave) way. However, while analyzing according to different size classes (VSEs, SMEs and LEs); we find that the linear negative effect becomes larger and the non-linear effect is significant only in small and medium-sized enterprises (SME)
L’ENDETTEMENT AFFECTE-T-IL LA PROFITABILITÉ? LE CAS DES FIRMES AGRO-ALIMENTAIRES FRANÇAISES
This article aims to expand existing empirical knowledge on the impact of debt level on profitability of companies. We analyze a sample of 568 unlisted French companies (Agro-food sector) spanning over a period of 1999 to 2006. We show, by using the generalized method of moments (GMM), that debt affects negatively on the profitability, but this effect is negligible and sometimes insignificant according to the ratio of profitability used (Prof1, Prof2 or ROA). Furthermore, we find existence of non-linear relationship (concave curve) between level of debt and profitability, but this non-linear impact is validated only in the case of very small enterprises