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The principal aim of this paper is to test how firm characteristics affect Small and Medium Enterprise (SME) capital … suggest that non-debt tax shields and profitability are both negatively related to SME leverage, while size, growth options … and asset structure influence positively SME capital structure; they also confirm a maturity matching behaviour in this …
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We test the assumptions of trade-off theory (TOT) and pecking order theory (POT) regarding corporate leverage. The dependent variable being the debt ratio, we apply a linear model upon a balanced panel data-set of 2,370 French SMEs over the period 2002 - 2010. In accordance to TOT, trade credit...
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