Bankers in the Board of Directors and the Debt Ratio of the Tunisian Companies

Nourchène Hamza Hakim () and Habib Affes
Additional contact information
Nourchène Hamza Hakim: Faculty of Economics and Management, University of Sfax, Tunisia
Habib Affes: Faculty of Economics and management, University of Sfax, Tunisia

Journal of Internet Banking and Commerce, 2016, vol. 21, issue 02, 01-15

Abstract: In this study, we examine the effect of the presence of the banks in the Board of Directors on the firms’ debt ratio. Our results on a sample of 14 Tunisian companies listed on the Tunis stock market showed that the relationship between these two variables depends on the nature of administrators (lending and non-lending bankers, investors, and external bankers) and the probability of firms’ failure (Z-Score). Our results show that the presence of lenders in the board of directors has a negative impact (the control hypothesis) whereas the presence of non-lenders has a positive effect on the debt ratio (hypothesis of expertise suppliers). Moreover, it was found that there is a negative relationship between the presence of investors, of external directors and of debt. The same results were found when integrating the variable of failure measured by the Z-Score in the linear model.

Keywords: Bankers on Board; Debt Ratio (search for similar items in EconPapers)
JEL-codes: A11 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.icommercecentral.com/open-access/banke ... panies.php?aid=76770 Full text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:joibac:0187

Access Statistics for this article

Journal of Internet Banking and Commerce is currently edited by Vijaya Lakshmi, Nahum Goldmann and Dale Pinto

More articles in Journal of Internet Banking and Commerce
Bibliographic data for series maintained by Dale Pinto ().