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Defence and firm financial structure in France

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  • Jean Belin
  • Marianne Guille

Abstract

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.

Suggested Citation

  • Jean Belin & Marianne Guille, 2008. "Defence and firm financial structure in France," Review of Financial Economics, John Wiley & Sons, vol. 17(1), pages 46-61.
    • Handle: RePEc:wly:revfec:v:17:y:2008:i:1:p:46-61
    DOI: 10.1016/j.rfe.2007.02.002
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    Cited by:

    1. Jean Belin & Marianne Guille & Nathalie Lazaric & Valérie Mérindol, 2019. "Defense Firms Adapting to Major Changes in the French R&D Funding System," Defence and Peace Economics, Taylor & Francis Journals, vol. 30(2), pages 142-158, February.
    2. Manuel Acosta & Daniel Coronado & Esther Ferrandiz & M. Rosario Marin & Pedro J. Moreno, 2018. "Patents and Dual-use Technology: An Empirical Study of the World's Largest Defence Companies," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(7), pages 821-839, November.
    3. Jean Belin & Marianne Guille, 2008. "R&D et innovation en France : quel financement pour les entreprises de la Défense ?," Innovations, De Boeck Université, vol. 0(2), pages 33-59.

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