What Determines The Duration Of Bank-Enterprise Relationships For Tunisian Firms?

Abstract

In this paper we analyze factors that determine the duration of the bank-enterprise relationships in Tunisia. Our study is based on data of 100 companies during the period 2000-2007. By adopting panel data estimation, our results show that only firm characteristics, the number of banks, and the credit rationing have significant effects on the duration of banking relationships. However, the characteristics of the banking system did not have any major consequences on the duration of the bank-enterprise relationships.