Short Term Financial Debts as an Alternative or a Complementary to Raising Capital

  • ذهيبة بن عبد الرحمان كلية العلوم الاقتصادية والتجارية وعلوم التسيير جامعة غرداية
  • بن ساسي إلياس كُلّية العُلوم الاقتصاديّة والعُلوم التّجاريّة وعُلوم التّسيير مخبر اداء المؤسسات والاقتصاديات في ظل العولمة جامعة قاصدي مرباح، ورقلة
  • بولرباح غريب كُلّية العُلوم الاقتصاديّة والعُلوم التّجاريّة وعُلوم التّسيير مخبر اقتصادیات المنظمات والبیئة الطبیعية جامعة قاصدي مرباح ورقلة
Keywords: short-termfinancial debts, raising the capital in cash, the annexation of reserves, internal financial deficit, simultaneous equations system

Abstract

This study aims at highlighting the relationship between the finance by short-term financial debts, by raising the capital in cash and the annexation of reserves and the determinants of these two types of Finance. The sample included fifty institutions belonging to the private sector in Ghardaia, over seven years, based on a system of simultaneous equations. We conclude that the use of short-term financial debts is a complementary and not an Alternative one  to raising capital in cash and by annexating reserves. Besides, there is a positive impact of  Return on equity, and  the internal financial deficit  on the use of short-term financial debt on one hand and a negative impact of the size and the legal form there exists on its use, on the other hand. The results also show a negative impact of the Return on equity and a positive impact of the size and the legal form on raising the capital in cash and by the annexation of reserves.

Published
2019-09-19