Abstract
This study examines the determinants of the financial structure in a context where the financial market is still embryonic. From a sample of 62 enterprises, the research carried out permit to highlight the fact that the financial structure in the small and medium size enterprises is more influenced by certain profile characteristics than others. Thus, the structure of shareholding, the size stated in terms of the number of employees and the nature of property, introduce a high discrimination between non rated enterprises and this with regards to the importance of their owned capital. Also, the importance of negative working capital and the speed of economic access explain the differences between group of enterprises from the point of view of financing equilibrium, as well as the distribution rate of the dividends and profitability which are reputed in explaining significantly the differences in the indebtedness rate as far as the SME of our sample are concerned.
Highlights
SMEs (Small and medium sized enterprises) due to many constraints and variables including those relating to their specificities towards the theory of modern finance, and the supervisory system are unable to obtain funds that are able to meet with their expectations (Yassine, 2013)
If one recognizes that more than 80% of SMEs die during the first five years of their existence, and that one of the crucial reasons for this failure is probably still the problem of financing, it must be recognized that a key factor to the success of SME is and remains the undisputed choice of a suitable financial structure, especially with Hirigoyen and Jobar (1989), it is no longer possible to make a dichotomy between financing decisions and investment choices
The financial structure is partly determined by internal forces facing the monopoly of banks in terms of loans offers, internal factors and especially those related to the negotiating power of leaders permit them to control their politics of indebtedness themselves and to www.ccsenet.org/ijbm
Summary
SMEs (Small and medium sized enterprises) due to many constraints and variables including those relating to their specificities towards the theory of modern finance, and the supervisory system are unable to obtain funds that are able to meet with their expectations (Yassine, 2013). These factors do not plead in the favor of these enterprises for which banks do not always find any interest in financing them due to their lack of knowledge and experience on the work of proximity with the latter (Le Filleur, 2009) In this light, the transactional behavior of banks hampers the development of SME given that behaviors of banks are characterized by the imposition of guarantees of a tangible nature and the non renegotiation as the condition of loan, the increment of the interest rate of short termed loans and the preference for immediately profitable investments (Tioumagneng, 2012; Yassine, 2013). The financial structure is partly determined by internal forces facing the monopoly of banks in terms of loans offers, internal factors and especially those related to the negotiating power of leaders permit them to control their politics of indebtedness themselves and to www.ccsenet.org/ijbm
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