  The objective of this article is to analyze the impact of capital structure
on profitability. This impact can be explained by three essential theories:
signaling theory, tax theory and the agency costs theory. A sample of 1846
French industrial firms are taken over the period 1999-2006, as a dynamic panel
study by using the generalized method of moments (GMM). We show that capital
structure has no influence on the profitability of French firms, regardless the
size of the company.
