Does stock market development always improve firm-level financing? Evidence from Tunisia

Lagoarde‐Segot, Thomas

doi:10.1016/j.ribaf.2011.10.003

Cited by 17 publications

(1 citation statement)

References 22 publications

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“…Unlike in developed markets, banks dominate the financial systems and control the financing channels of closely held firms in emerging markets, affecting the way managers choose their leverage and payout policies (Jabbouri, 2016). Similarly, Lagoarde-Segot (2013) indicates the need for and importance of international studies focusing on revisiting the established models and theories of corporate finance decisions in the light of the particularities of different economies and times.…”

Section: Introductionmentioning

confidence: 99%

The analysis of debt levels in public firms: an international evidence

Pathak

Gupta²,

Jalali

2021

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PurposeThis study investigates if the widely held predictors of corporate leverage exhibit predictive consistency through times and across countries amidst country heterogeneities such as legal principles, state of economic development and protection of investors’ rights.Design/methodology/approachWe employ financial data for 3,197 unique firms from eight emerging and ten developed countries during the years 2001–2017 and use Tobit regression models, a two-step Fama−MacBeth(1973) regression and panel data regression techniques in order to ensure the robustness of estimates.FindingsWe find that firms in the civil French law system exhibit the highest average of a debt (around 27%), whereas firms based in high investors’ protection environment and in developed nations borrow significantly less than their counterparts. Furthermore, among predictors, including a firm's payout ratio, it returns on equity and the cash ratio except the P/B ratio have varying predictability for a corporate debt when firms are classified based on law systems, investors’ rights and the economic scenarios. The crisis period significantly affects the relationship of debt levels with legal systems, investors’ rights and economic development scenario. The author’s estimates are robust to alternate analysis.Originality/valueThis study is unique in its methodological approach and involves a considerably large number of countries and a longer study period for the results to be more generalizable compared to other existing studies.

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Section: Introductionmentioning

confidence: 99%

The analysis of debt levels in public firms: an international evidence

Pathak

Gupta²,

Jalali

2021

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Revisiting the nexus of the financial development and economic development: new international evidence using a wavelet approach

2020

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This study investigates Granger causality and instantaneous causality between financial development and economic development for 76 economies of four different income levels. The main novelty of the study is that it fills a gap in existing studies on the relationship between financial development and economic development by employing wavelet analysis, which enables us to study the varying timescale relationships of the variables. Among the findings is that at the scale of 4–8 years, it is more common for financial development and economic development to support each other once a country achieves at least lower-middle-income status.

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Board busyness and new insights into alternative bank dividends models

Trinh

Elnahass

Salama

2020

Rev Quant Finan Acc

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This study examines the possible opposing effects of the board function of busyness (i.e. the presence of busy independent non-executive directors serving on multiple boards) on bank dividend payout patterns between two alternative payouts models (i.e. conventional and Islamic). Using an international sample for listed banks during the periods of 2006-2018, we show that the busyness of boards of directors can explain differential dividend payouts behaviour between two banking systems. For conventional banking dividend model, a busy board has a significantly positive impact on the bank's dividend payout level. However, during the financial crisis of 2007/2009, the positive impact of board busyness on dividends payouts is tempered for these banks. In contrast, Islamic banks operating under a more constrained dividend model, report significantly lower levels of payouts and lower likelihood when they have busy directors on board. We find insignificant evidence for the effect of the financial crisis in Islamic banks. These results highlight a potential challenge for the unique agency conflicts arising from the complex payout model of Islamic banks (in terms of profit distribution principles, motives, mechanics and techniques, and flexibility of payouts), which is subject to the demand for greater monitoring and additional rulings when compared to the conventional.

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Does stock market development always improve firm-level financing? Evidence from Tunisia

Cited by 17 publications

References 22 publications

The analysis of debt levels in public firms: an international evidence

The analysis of debt levels in public firms: an international evidence

Revisiting the nexus of the financial development and economic development: new international evidence using a wavelet approach

Board busyness and new insights into alternative bank dividends models

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