by Amira Berrahal
This study investigates the impact of off-balance sheet commitments on the debt ratio of companies listed on the Tunisian Stock Exchange (BVMT) within the context of an uncertain economic climate and evolving credit practices. Recognizingthat these unrecorded obligations can significantly influence a firm's future financial standing and risk profile, the research aims to determine the effect of off-balance sheet engagements (ENGAG) on the total debt to total assets ratio (TDA). Employingpanel data analysis on 38 companies from 2019 to 2024 and utilizing GeneralizedLinear Models (GLM) and Ordinary Least Squares (OLS) regression, our questions are: What is the impact of off-balance sheet commitments on the debt ratio? Andhowcan we know the impact of other factors on the debt ratio? The findings reveal a significant positive relationship between off-balance sheet engagements and the debt ratio. This suggests that increased reliance on thesefinancing tools is associated with higher leverage, underscoring the importanceof considering financial transparency and potential hidden risks when evaluatingacompany's financial health
Off-Balance Sheet Commitments, Debt Ratio, Tunisian Stock Exchange, Panel
Data Analysis
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