Financing structure and companies of the BRVM[Structure de financement et entreprises de la BRVM]

The capital structure of a company is not the result of chance; it is in principle the result of a decision to integrate a whole set of factors. Thus, in order to understand the diversity of debt behavior of companies listed on the BRVM, several factors must be taken into consideration. The main objective of this article is to verify the factors that can influence the financial structure of BRVM-listed firms and to analyze their influence. Our study focuses on a sample of 28 BRVM-listed firms over a period of 11 years (2009 to 2019), using panel data. Following an econometric study involving the methods of generalized least squares (fixed effect) and generalized method of moments (one-step), we tested the influence of traditional firm-related determinants and corporate governance determinants on leverage. The results reveal that most of the determinants explain the leverage behavior of firms listed on the BRVM. They show that the variables size, tangibility, cost of financing, tax savings not related to debt is significant and positively influence the level of debt, these results are explained by the trade-off theory. Unlike the variable profitability, the size of the board of directors which are significant and influence negatively the level of debt. These results confirm the predictions of the hierarchical preference theory. However, the variable growth opportunity, liquidity and power separation are not significant, i.e. they do not explain the debt behavior of our study sample. The results obtained from this research will help explain the financing policy of firms listed on the BRVM. In addition, they will be used by the managers of the companies to find some answers to their decisions concerning the policy of indebtedness.