test_moissonnage_selune
type: Agent

Does debt affect profitability? An empirical study of French trade sector
type: Distribution
access URL: https://shs.hal.science/halshs-00780310
format: HTML
issued: 2026-05-14T23:14:25.715243
modified: 2026-05-14T23:14:25.644324

Does debt affect profitability? An empirical study of French trade sector
type: Dataset
contact point: Organization
  fn: CCSD
keyword: infoeu-reposemanticspreprint
keyword: panel-data
keyword: debt
keyword: gmm
keyword: jel-c---mathematical-and-quantitative-methodscc3---multiple-or-simultaneous-equation-models--mul
keyword: qfinstquantitative-finance-q-finstatistical-finance-q-finst
keyword: preprints-working-papers-
keyword: profitability
keyword: shsecohumanities-and-social-scienceseconomics-and-finance
landing page: https://shs.hal.science/halshs-00780310
description: 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).
issued: 2026-05-14T23:14:25.672692
language: en
modified: 2026-05-14T23:14:25.672698