Capital structure choice Research Papers (original) (raw)
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The objective of this study was to describe the effect of CEO political connection and firm social responsibility on debt access. These constructions have been evaluated in Tunisian firms. The results showed the presence of a positive... more
The objective of this study was to describe the effect of CEO political connection and firm social
responsibility on debt access. These constructions have been evaluated in Tunisian firms. The
results showed the presence of a positive relationship between political connection, corporate social
responsibility, and the debt level. The authors also verified the presence of a negative relationship
between political connection and the social responsibility of Tunisian companies. This research has
shown how political connection and social responsibility improve the image of the company and
facilitate their access to external funding methods. Tunisian companies are advised to know the
importance of political connection and social responsibility in the selection of their leaders.
This research examines the determinants of firms" capital structure introducing a behavioral perspective that has received little attention in corporate finance literature. After discussing the theoretical linking between firm capital... more
This research examines the determinants of firms" capital structure introducing a behavioral perspective that has received little attention in corporate finance literature. After discussing the theoretical linking between firm capital structure choice and the CEO"s attitude and behavior, we are showing on empirical grounds the relationship between the manager"s behavior toward the capital structure preferences and his cognitive commitment level. The article explains that the main cause of capital structure choice is CEO commitment level. We introduce an approach based on Decision Tree Analysis technique with a series of semi-directive interviews. The originality of this research is guaranteed since it traits the behavioral corporate policy choice in emergent markets. In the best of knowledge this is the first study in the Tunisian context that explores such area of research. Results show that psychological dimension introduced in the capital structure analysis has enriched the Pecking Order Theory (POT) and the Static Trade Off Theory (STT) CEO (CEO affective commitment) prefer to finance their projects primarily through internal capital, by debt in the second hand and finally by equity.