The effect of debt on corporate profitability evidence from french service sector

Mazen Kebewar; Syed Muhammad Shah

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). -- Debt ; GMM ; Panel data ; Profitability

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Alternative title:	L'effet de l'endettement sur la profitabilité évidence de secteur des services français
Year of publication:	2013
Authors:	Kebewar, Mazen ; Shah, Syed Muhammad
Publisher:	Orléans Cedex : Laboratoire d'Economie d'Orléans
Subject:	Dienstleistungssektor \| Service industry \| Frankreich \| France \| Rentabilität \| Profitability

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Extent:	Online-Ressource (20 S.)
Series:	Document de recherche / Laboratoire d'Economie d'Orléans. - Orléans, ZDB-ID 2717804-3. - Vol. 2013-01
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/73556 [Handle]
Classification:	C33 - Models with Panel Data ; G32 - Financing Policy; Capital and Ownership Structure ; L25 - Firm Size and Performance
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10009743416