Why African Companies Are Absent on the Bond Market? An Explanation through Companies Listed on the BRVM

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.