Abstract

This study examines the impact of stock trading on capital structure using a sample of Tunisian publicly traded firms over the period 2002-2012. The study uses General least square regressions. Our results show that macroeconomic variables related to monetary policy and Fiscal policy have an impact on leverage. This relationship is positive for the case of Interest Rate (INT) and Unemployment Rate (UR) and negative for the case of Inflation Rate (IR). Moreover, we found that this relationship is robust for short term book leverage. However, for the long term, we found that only Interest Rate and Unemployment Rate have strong positive impact on leverage.

Originality/value–This is the first paper that examines the relationship between Macroeconomics determinants and capital structure in Tunisia.

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