Capital structure determinants: An empirical study of French companies in the wine industry

International Journal of Wine Business Research

Volumn 20, Issue 2, 2008, Pages 171-194

  Viviani, Jean Laurent ^a  

^a UNIV MONTPELLIER   (France)

Author keywords

Capital structure; France; Gearing; Wines

Indexed keywords

EID: 84986031669     PISSN: 17511062     EISSN: 17511070     Source Type: Journal    
DOI: 10.1108/17511060810883786     Document Type: Article

References (89)

1. Akhtar, S. (2005), “The determinants of capital structure for Australian multinational and domestic corporations”, Australian Journal of Management, Vol. 30 No. 2, pp. 321-41.
2. Ang, J.S., Chua, J.H. and McConnel, J.J. (1982), “The administrative costs of corporate bankruptcy: a note”, Journal of Finance, Vol. 37, pp. 337-48.
3. Baker, M. and Wurgler, J. (2002), “Market timing and capital structure”, The Journal of Finance, Vol. 57, pp. 1-32.
4. Balakrishnan, S. and Fox, I. (1993), “Asset specificity, firm heterogeneity and capital structure”, Strategic Management Journal, Vol. 14, pp. 1-16.
5. Barton, S.L., Hill, N.C. and Sundaram, S. (1989), “An empirical test of stakeholder theory predictions of capital strucuture”, Financial Management, Vol. 18 No. 1, pp. 36-44.
6. Berger, A.N. and Udell, G.F. (1988), “The economics of small business finance: the roles of private equity and debt markets in the financial growth cycle”, Journal of Banking and Finance, Vol. 22, pp. 613-73.
7. Bolton, P. and Scharfstein, D. (1990), “A theory of predation based on agency problems in financial contracting”, American Economic Review, Vol. 80, pp. 93-106.
8. Booth, L., Aivazian, V., Demirguc-Kunt, A. and Maksimovic, V. (2001), “Capital structure in developing countries”, The Journal of Finance, Vol. 56, pp. 87-130.
9. Bradley, M., Jarell, G. and Kim, E.H. (1984), “On the existence of an optimal capital structure: theory and evidence”, The Journal of Finance, Vol. 39, pp. 857-78.
10. Brander, J.A. and Lewis, T.R. (1986), “Oligopoly and financial structure: the limited liability effect”, American Economic Review, Vol. 76, pp. 956-70.
11. Brander, J.A. and Lewis, T.R. (1988), “Bankruptcy costs and the theory of oligopoly”, Canadian Journal of Economics, Vol. 21, pp. 221-43.
12. Cassar, G. and Holmes, S. (2003), “Capital structure and financing of SMEs: Australian evidence”, Accounting and Finance, Vol. 43, pp. 123-47.
13. Chittenden, F., Hall, G. and Huchinson, P. (1996), “Small firm growth, access to capital markets and financial structure: review of issues and an empirical investigation”, Small Business Economics, Vol. 8 No. 1, pp. 59-67.
14. Chung, K.H. (1993), “Asset characteristics and corporate debt policy: an empirical test”, Journal of Business Finance and Accounting, Vol. 20, pp. 83-98.
15. Coelho, A. and Rastoin, J.-L. (2006), “Les stratégies de développement des grandes firmes mondiales du vin”, Progrès Agricole et Viticole, Vol. 123 Nos. 2-3, pp. 34-41, 55-62.
16. Dasgupta, S. and Titman, S. (1998), “Pricing strategy and financial policy”, Review of Financial Studies, Vol. 11, pp. 705-35.
17. DeAngelo, H. and Masulis, R.W. (1980), “Optimal capital structure under corporate and personal taxation”, Journal of Financial Economics, Vol. 8, pp. 3-29.
18. Declerck, F. (2005), “Managing price cycles in the champagne industry”, Agribusiness, Vol. 21 No. 4, pp. 531-44.
19. Declerck, F. and Sherrick, B. (1993), “Profit structure relationships in US food industries”, Economie et Gestion Agro-Alimentaire, Vol. 26, pp. 12-17.
20. Deesomsak, R., Krishna, P. and Pescetto, G. (2004), “The determinants of capital structure: evidence from the Asia Pacific region”, Journal of Multinational Financial Management, Vol. 14, pp. 387-405.
21. Donaldson, G. (1961), “Corporate debt capacity: a study of corporate debt policy and the determinants of corporate debt capacity”, working paper, Division of Research, Harvard Business School, Harvard University, Cambridge, MA.
22. Fama, E. and French, K.R. (2002), “Testing trade-off and pecking order predictions about dividends and debt”, The Review of Financial Studies, Vol. 15, pp. 1-33.
23. Fama, E. and French, K.R. (2005), “Financing decisions: who issues stock?”, Journal of Financial Economics, Vol. 76, pp. 549-82.
24. Fattouh, B., Scaramozzino, P. and Harris, L. (2005), “Capital structure in South Korea: a quantile regression approach”, Journal of Development Economics, Vol. 76, pp. 231-50.
25. Fischer, E.O., Heinkel, R. and Zechner, J. (1989), “Dynamic capital structure choice: theory and tests”, Journal of Finance, Vol. 44, pp. 19-40.
26. Frank, M.Z. and Goyal, V.K. (2003), “Testing the pecking order theory of capital structure”, Journal of Financial Economics, Vol. 67, pp. 217-48.
27. Gaud, P., Jani, E., Hoesli, M. and Bender, A. (2005), “The capital structure of Swiss companies: an empirical analysis using dynamic panel data”, European Financial Management, Vol. 11 No. 1, pp. 51-69.
28. Ghosh, A., Cai, F. and Li, W. (2000), “The determinants of capital structure”, American Business Review, Vol. 29 No. 2, June, pp. 129-32.
29. Grinblatt, M. and Titman, S. (1998), Financial Markets and Corporate Strategy, international edition, McGraw-Hill, Boston, MA.
30. Harris, M. and Raviv, A. (1990), “Capital structure and the informational role of debt”, The Journal of Finance, Vol. 45 No. 2, pp. 321-49.
31. Harris, M. and Raviv, A. (1991), “The theory of capital structure”, Journal of Finance, Vol. 49, pp. 297-355.
32. Homaifar, G., Zietz, J. and Benkato, O. (1994), “An empirical model of capital structure: some new evidence”, Journal of Business Finance & Accounting, Vol. 21 No. 1, pp. 1-14.
33. Hutchinson, R.W. and Hunter, R.L. (1995), “Determinant of capital structure in the retailing sector in the UK”, The International Review of Retail, Distribution and Consumer Research, Vol. 5 No. 1, pp. 63-78.
34. Jalilvand, A. and Harris, R. (1984), “Corporate behavior in adjusting to capital structure and dividend targets: an econometrics study”, The Journal of Finance, Vol. 39 No. 2, pp. 127-46.
35. Jensen, G.R., Donald, P.S. and Thomas, S.Z. (1992), “Simultaneous determination of insider ownership, debt, and dividend policies”, Journal of Financial and Quantitative Analysis, Vol. 27 No. 2, pp. 247-64.
36. Jensen, M. (1986), “Agency costs of free cash flow, corporate finance and takeovers”, American Economic Review, Vol. 76, pp. 323-9.
37. Jensen, M. and Meckling, W. (1976), “Theory of the firm: managerial behaviour, agency costs and capital structure”, Journal of Financial Economics, Vol. 3, pp. 305-60.
38. Jordan, J., Lowe, J. and Taylor, P. (1998), “Strategy and financial policy in UK small firms”, Journal of Business Finance and Accounting, Vol. 25 No. 1, pp. 1-27.
39. Jung, K., Kim, Y. and Stulz, R. (1996), “Timing, investment opportunities, managerial discretion, and the security issue decision”, Journal of Financial Economics, Vol. 42, pp. 159-85.
40. Kayhan, A. and Titman, S. (2007), “Firms’ history and their capital structures”, Journal of Financial Economics, Vol. 83, pp. 1-32.
41. Kester, W.C. (1986), “Capital and ownership structure: a comparison of US and Japanese manufacturing corporations”, Financial Management, Vol. 15, Spring, pp. 5-16.
42. Korajczyk, R., Lucas, D. and McDonald, R. (1991), “The effects of information releases on the pricing and timing of equities issues”, Review of Financial Studies, Vol. 4, pp. 685-708.
43. Lee, K. and Kwok, C.Y. (1988), “Multinational corporations vs domestic corporations: international environmental factors and determinants of capital structure”, Journal of International Business Studies, Vol. 19, pp. 195-217.
44. Leland, H.E. (1994), “Corporate debt value, bond covenants and optimal capital structure”, The Journal of Finance, Vol. 49, pp. 1213-52.
45. Leland, H.E. (1998), “Agency costs, risk management and capital structure”, The Journal of Finance, Vol. 53, pp. 1213-43.
46. Lemmon, M.L. and Zender, J.F. (2002), “Debt capacity and tests of capital structure theories”, unpublished working paper, available at: www.ssrn.com
47. Long, M. and Malitz, I. (1992), “The investment-financing nexus: some empirical evidence”, in Stern, J. and Chew, D. (Eds), The Revolution in Corporate Finance, Blackwell, Oxford, pp. 156-62.
48. Loughran, T., Ritter, J. and Rydqvist, K. (1994), “Initial public offerings: international insights”, Pacific Basin Finance Journal, Vol. 2, pp. 165-99.
49. Lucas, D. and McDonald, R. (1990), “Equity issues and stock price dynamics”, The Journal of Finance, Vol. 45, pp. 1019-44.
50. Maksimovic, V. (1988), “Capital structure in repeated oligopolies”, Rand Journal of Economics, Vol. 19, pp. 389-407.
51. Mehran, H. (1992), “Executive incentive plans, corporate control and capital structure”, Journal of Financial and Quantitative Analysis, Vol. 27 No. 4, pp. 539-60.
52. Miao, J. (2005), “Optimal capital structure and industry dynamics”, The Journal of Finance, Vol. 60 No. 6, pp. 2621-59.
53. Michaelas, N., Chittenden, F. and Poutziouris, F. (1999), “Financial policy and capital structure choice in UK SMEs: empirical evidence from company panel data”, Small Business Economics, Vol. 12, pp. 113-30.
54. Miguel, A. and Pintado, J. (2001), “Determinants of capital structure: new evidence from Spanish panel data”, Journal of Corporate Finance, Vol. 7, pp. 77-99.
55. Modigliani, F. and Miller, M.H. (1958), “The cost of capital, corporate finance, and the theory of investment”, The American Economic Review, Vol. 48 No. 2, pp. 261-97.
56. Modigliani, F. and Miller, M.H. (1963), “Corporate income taxes and the cost of capital: a correction”, The American Economic Review, Vol. 53 No. 2, pp. 433-43.
57. Myers, S.C. (1977), “Determinants of corporate borrowing”, Journal of Financial Economics, Vol. 5, pp. 147-75.
58. Myers, S.C. (1984), “The capital structure puzzle”, The Journal of Finance, Vol. 39 No. 3, pp. 575-92.
59. Myers, S.C. and Majluf, N.S. (1984), “Corporate financing and investment decisions when firms have information that investors do not have”, Journal of Financial Economics, Vol. 13, pp. 187-221.
60. O’Brien, T. and Vanderheiden, P. (1987), “Empirical measurement of operating leverage for growing firms”, Financial Management, Vol. 16 No. 2, Summer, pp. 45-53.
61. Ozkan, A. (1996), “Corporate bankruptcies, liquidation costs and the role of banks”, The Manchester School, Vol. 64, pp. 104-19.
62. Ozkan, A. (2001), “Determinants of capital structure and adjustment to long run target: evidence from UK company panel data”, The Journal of Business Finance & Accounting, Vol. 28 Nos. 1-2, pp. 175-98.
63. Panno, A. (2003), “An empirical investigation on the determinants of capital structure: the UK and Italian experience”, Applied Financial Economics, Vol. 13, pp. 97-112.
64. Petersen, M.A. and Rajan, R.G. (1994), “The benefits of lending relationships: evidence from small business data”, The Journal of Finance, Vol. 49 No. 1, pp. 3-37.
65. Pettit, R. and Singer, R. (1985), “Small business finance: a research agenda”, Financial Management, Vol. 14 No. 3, Autumn, pp. 47-60.
66. Plimsoll (2005), Wines & Spirits Wholesalers, Plimsoll Publishing Limited, Stockton-on-Tees.
67. Poitevin, M. (1989), “Financial signalling and the deep pocket argument”, Rand Journal of Economics, Vol. 20, pp. 26-40.
68. Prowse, S.D. (1991), “Institutional investment patterns and corporate financial behaviour in the US and Japan”, Journal of Financial Economics, Vol. 27, pp. 43-66.
69. Rajan, R.G. and Zingales, L. (1995), “What do we know about capital structure? Some evidence from international data”, The Journal of Finance, Vol. 50 No. 5, pp. 1421-60.
70. Saulpic, O. and Tanguy, H. (2002), “Influence de la structure financière sur les choix stratégiques: étude de cas dans l’industrie du vin”, Cahier 2002-05, INRA-LORIA.
71. Scott, J.H. (1977), “Bankruptcy, secured debt, and optimal capital structure”, The Journal of Finance, Vol. 32, pp. 1-19.
72. Shyam-Sunder, L. and Myers, S.C. (1999), “Testing static trade-off against pecking order models of capital structure”, Journal of Financial Economics, Vol. 51, pp. 219-44.
73. Smith, C.W. and Warner, J.B. (1979), “On financial contracting: an analysis of bond covenants”, Journal of Financial Economics, Vol. 7, pp. 117-36.
74. Sogorb-Mira, F. (2002), “On capital structure in the small and medium enterprises: the Spanish case”, working paper, Centre Européen Jean Monnet de l’Université de San Pablo, Madrid.
75. Song, H.-S. (2005), “Capital structure determinants. an empirical study of Swedish companies”, electronic working paper series, CESIS, January, p. 25.
76. Stiglitz, J. (1972), “Some aspects of the pure theory of corporate finance: bankruptcies and take-overs”, Bell Journal of Economics and Management Science, Vol. 3, pp. 458-82.
77. Storey, D.J. (1994), “The role of legal status in influencing bank financing and new firm growth”, Applied Economics, Vol. 26, pp. 129-36.
78. Stulz, R. (1990), “Managerial discretion and optimal financing policies”, Journal of Financial Economics, Vol. 26, pp. 3-27.
79. Titman, S. (1984), “The effect of capital structure on the firm's liquidation decision”, Journal of Financial Economics, Vol. 13, pp. 137-52.
80. Titman, S. and Wessels, R. (1988), “The determinants of capital structure choice”, The Journal of Finance, Vol. 43, pp. 1-19.
81. Van der Wijst, N. and Thurik, R. (1993), “Determinants of small firm debt ratios: an analysis of retail panel data”, Small Business Economics, Vol. 5, pp. 55-65.
82. Vinexpo (2007), “La conjoncture mondiale du vin et ses perspectives à l’horizon 2010”, Vinexpo, Bordeaux, 17-21 June, pp. 1-10.
83. Voulgaris, F., Asteriou, D. and Agiomirgianakis, G. (2004), “Size and determinants of capital strucuture in the Greek manufacturing sector”, International Review of Applied Economics, Vol. 18 No. 2, pp. 247-62.
84. Warner, J.B. (1977), “Bankruptcy costs: some evidence”, The Journal of Finance, Vol. 32, pp. 337-47.
85. Welch, I. (2004), “Capital structure and stock returns”, Journal of Political Economy, Vol. 112, pp. 106-31.
86. Williamson, O. (1988), “Corporate finance and corporate governance”, The Journal of Finance, Vol. 43, pp. 567-91.
87. Barclay, M.J. and Smith, C.W. (1995), “The maturity structure of corporate debt”, The Journal of Finance, Vol. 50, pp. 609-32.
88. Krishnaswami, S., Spindt, P.A. and Subramaniam, V. (1999), “Information asymmetry, monitoring and the placement structure of corporate debt”, Journal of Financial Economics, Vol. 51, pp. 407-34.
89. Marsh, P. (1982), “The choice between debt and equity: an empirical study”, The Journal of Finance, Vol. 37, pp. 121-44.