Capital structure’s explanatory factors : The Maghreb case
This article analyzes the determinants of capital structure of Tunisian companies in the light of various financial theories. We test empirically with a panel data approach, the three main theoretical frameworks addressing the capital structure of company; the Trade-off Theory, the Pecking Order Theory and the Market Timing Theory. Our results show the limits of each model to explain the behavior of debt Tunisian companies. We show that the combination of these three theoretical frameworks provides better results and attempts to promote a theoretical framework in relation to the other seem inconclusive with respect to their combination. In particular, the performance of the Tunisian stock market does not affect the behavior of debt Tunisian companies, while the other "classic" variables such as "Size", "Profitability" and "Guarantees" positively influence the level of debt of Tunisian firms.
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