DEBT MARKET TIMING: EVIDENCE FROM BANK-BASED SYSTEMS

  • Khemaies Bougatef
  • Jameleddine Chichti

Abstract

Several studies make evidence that market timing becomes the factor that shapes financing policies. However, debt market
timing still less developed compared to equity market timing. This paper investigates the relevance of market timing
considerations on the debt issuance using a panel of 30 Tunisian listed firms and 100 French firms of the stock market index
SBF 120. Consistent with the market timing theory, we find that firms tend to issue debt when interest rate are low and are
less likely to take debt issuance decisions when they perceive equity market conditions as more favourable. This evidence
suggests that borrowing policies are shaped by market timing considerations.
Published
2010-12-15
How to Cite
BOUGATEF, Khemaies ; CHICHTI, Jameleddine . DEBT MARKET TIMING: EVIDENCE FROM BANK-BASED SYSTEMS. Journal of Advanced Studies in Finance, [S.l.], v. 1, n. 2, p. 144-151, dec. 2010. ISSN 2068-8393. Available at: <https://journals.aserspublishing.eu/jasf/article/view/32>. Date accessed: 25 apr. 2019.
Section
Journal of Advanced Studies in Finance