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...

This paper develops an alternative interpretation of the observed inverse relation between market-to-book ratio and long term indebtedness based on the market timing theory of capital structure and provides empirical evidence to substantiate the same. Our findings suggest that in the presence of...

This paper examines the relative importance of many factors in the capital structure decisions of publicly traded American firms from 1950 to 2003. The most reliable factors for explaining market leverage are: median industry leverage (+ effect on leverage), market-to-book assets ratio (−),...

This paper examines time-series patterns of external financing decisions and shows that publicly traded U.S, firms fund a much larger proportion of their financing deficit with external equity when the cost of equity capital is low. The historical values of the cost of equity capital have...

This article aims at analyzing the financial structure of the Tunisian listed companies in the stock exchange of Tunis (SET). The study focuses on 26 companies observed over a period of 6 years (2005-2010). Three representations of the behavior of funding are tested: The first considers that the...

We study the effects that relative (to a benchmark) performance evaluation has on the provision of incentives for the search of private information when managers are exogenously constrained in their ability to sell short and purchase on margin. With these portfolio constraints we show that...

This empirical study revisits the determinants of firms' capital structures. The main focus thereby is onthe 'market timing theory', according to which the current level of the capital structure is the cumulative outcome of past attempts to `time the market', i.e. issuing shares when equity is...

This article aims at analyzing the financial structure of the Tunisian listed companies in the stock exchange of Tunis (SET). The study focuses on 26 companies observed over a period of 6 years (2005–2010). Three representations of the behavior of funding are tested: The first considers that...