The Duration Of Relationship Banking And The Performance Of Tunisian Firms: An Empirical Test

Abstract

In this paper, we examine whether there exist a linkage between the duration of a bank enterprise relationship and the performance of Tunisian firms. To this end, we collected data of 100 Tunisian companies for the period 2000-2007. By, applying panel data technique, our results reveal that the cost of credit decrease the performance of Tunisian firms while the duration of bank relationships improves their performance and increase their profitability.