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Khemaies Bougatef and Jameleddine Chichti
''Timing of debt issues: Evidence from a panel of Tunisian and French firms''
( 2011, Vol. 31 No.2 )
Recent literature argues that market timing becomes the factor that shapes financing policies. However, empirical studies on debt market timing still less numerous than those on equity market timing. This paper seeks to investigate the relevance of market timing considerations on debt issues using a panel of Tunisian and French listed firms. We have documented that net debt issuance is a decrease function of the market monetary rate. Moreover, our findings reveals that Tunisian firms succeed to raise their values by issuing debt when they expect that interest rates will increase. By contrast, french firms fail to reduce their overall cost of capital.
Keywords: capital structure, debt market timing, interest rate, market conditions, panel data
JEL: G3 - Corporate Finance and Governance: General
Manuscript Received : Jan 10 2011 Manuscript Accepted : Apr 17 2011

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