What accounts for the difference in borrowing behaviour between French companies and companies in other euro-zone or OECD countries?

Since the subprime crisis, France’s corporate debt ratio has risen considerably relative to that in other euro-zone or OECD countries. This has caused some concern. Are we able to explain this difference in behaviour among French companies? It may stem from: An increase in their cash holdings; French companies generating insufficient earnings to finance their investments, which could result from a different income distribution in France; Greater acquisition activity in France than in other countries. We find that the right explanation seems to be: The increase in cash holdings; Acquisitions. French corporate debt is therefore balanced by assets in their balance sheets, which is reassuring.