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Master Thesis

The financing of farms: common features and specificities with SMEs

Abstract : The purpose of this study is to investigate the similarities and differences between the financing of farms and SMEs. Previous studies have analysed these categories of firms independently by explaining their capital structure, the determinants of their capital structure, and their financing choices, but no concrete study about making a comparative analysis between the two have been done. This study intends to fill this gap by making a comparative analysis between the two by providing a broad literature review on the theories and capital structure determinants that have been used to study farms and SMEs. Subsequently, some empirical analyses are made to investigate these determinants based on theories. The study uses a dataset of 1, 675 observations from 2016 to 2018 that are obtained from a collaboration with Crédit Agricole. The empirical methods are based on the Analysis of Variance(ANOVA) and the partial adjustment model. The ANOVA results demonstrate a significant difference between the level of indebtedness of farms and SMEs. However, the results show a similar debt level for some categories of farms and SMEs. The regression results reveal that both farms and SMEs adjust to their target debt level, but with a different speed of adjustment. Furthermore, the results demonstrate that profitability, size, and asset tangibility are positively correlated with the indebtedness of SMEs, but insignificant for farms.
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Master Thesis
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Submitted on : Friday, March 19, 2021 - 10:31:54 AM
Last modification on : Tuesday, April 6, 2021 - 3:23:33 AM


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  • HAL Id : dumas-03001176, version 1


Mohamed Camara. The financing of farms: common features and specificities with SMEs. Business administration. 2020. ⟨dumas-03001176⟩



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