This study proposes and tests an empirical model where the financial choices of French firms are simultaneously explained by variables issued from the two main conceptual frameworks, the Static Trade-off Theory and the Pecking Order Theory (POT). Following the path opened by Fama and French...

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...