TITLE:
Why African Companies Are Absent on the Bond Market? An Explanation through Companies Listed on the BRVM
AUTHORS:
Ndoume Essingone Hervé
KEYWORDS:
Bond Issue, BRVM, African Companies, Stock Market
JOURNAL NAME:
Modern Economy,
Vol.10 No.1,
January
18,
2019
ABSTRACT: This research provides some answers to the question
of the limited presence of African companies in the bond markets. Indeed, from
a sample of companies listed on the BRVM and panel models tested by the
Generalized Moment Method (GMM) developed by Blundell and Bond [1], we
study the behavior of the variables usually retained in the work on the
determinants of bond issues. We show that the reputation, renegotiability and
maturity of the debt, as well as the level of wealth created, determine the
debt behavior of companies. Also, any financing strategy by bond issues should
take into account these determinants.