IDEAS home Printed from https://ideas.repec.org/a/ids/ijmede/v18y2019i1-2p107-118.html
   My bibliography  Save this article

Political connections, collateral favours and debt access: some Tunisian evidence

Author

Listed:
  • Fayrouz Bencheikh
  • Neila Boulila Taktak

Abstract

The purpose of the paper is to study the effect of political connections on collateralisation and debt access. The study is carried out on a sample of Tunisian firms on the period 2007-2012. In the first step, we have taken into consideration an aggregate measure of collateral which is fixed assets. Results show that only long-term debt can be covered by fixed assets owned by connected firms. Then, in a second step, we have been studying the collateral liquidity through three components: lands, buildings and machineries and equipment. The major finding is that politically connected firms were able to gain access to debt without sufficient liquid collaterals.

Suggested Citation

  • Fayrouz Bencheikh & Neila Boulila Taktak, 2019. "Political connections, collateral favours and debt access: some Tunisian evidence," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 18(1/2), pages 107-118.
    • Handle: RePEc:ids:ijmede:v:18:y:2019:i:1/2:p:107-118
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=97803
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijmede:v:18:y:2019:i:1/2:p:107-118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=89 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.