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Defence and firm financial structure in France
Author(s) -
Belin Jean,
Guille Marianne
Publication year - 2007
Publication title -
review of financial economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.347
H-Index - 41
eISSN - 1873-5924
pISSN - 1058-3300
DOI - 10.1016/j.rfe.2007.02.002
Subject(s) - leverage (statistics) , purchasing , financial structure , business , capital structure , finance , financial crisis , financial system , economics , macroeconomics , debt , marketing , machine learning , computer science
European defence firms are progressively being privatized and the recourse to private finance in the defence sector is increasing. We use data on French firms to examine at the firm level the impact of defence dependence on firms' financial structure at the end of a period characterised by a decline of defence purchasing. In terms of leverage and financial ratios, we find many significant differences between defence and non‐defence firms but also between different categories of defence firms. The results provide some support for the hypothesis of a relationship between defence dependence and financial structure.