Importance of bonds financing as an alternative to direct debt financing: Case study of Algerian corporations.

Abstract

This research attempts to study the use of debt financing in Algerian listed and unlisted corporations, it also, attempts to provide more information possible about Algerian economic systems in order to develop Algerian stock exchange markets. Moreover, it suggests way to developing secondary market of bonds issues. Based on collection of administrated questionnaires to test the impact of outside factors on the choice of Algerian companies to use bonds instruments. To test this impact the study used One-sample test using SPSS package. The main results indicate that there is a significant positive relationship with the main factors such as economics, socials and lawfulness from one side and the issuance of bonds by Algerian corporations from the other side. This study recommends that Algerian corporation should be concentrated on the development and activation of bonds markets through bonds trading encouragement. Finally the Algerian stock exchange should develop an advertising technique in order to provide more information and knowledge to the Algerian investors.