Purpose – This paper aims to test the irrelevance proposition whereby changes in capital structure do not affect firm value. Design/methodology/approach – The long-run effect of changes in capital structure on firm value is examined, using a sample of 243 French firms over the period...

Purpose – This paper aims to test the irrelevance proposition whereby changes in capital structure do not affect firm value. Design/methodology/approach – The long‐run effect of changes in capital structure on firm value is examined, using a sample of 243 French firms over the period...