Article Published In Vol.12 (Jan-Feb 2024)

Financing structure of Congolese non-financial companies: analysis of the determinants and empirical modeling in the absence of securities markets

Author : KANZ A MUTOMB Olivier

The evolution of traditional and modern corporate financing instruments shows the strategic nature of the financing structure which refers to the composition of the company’s financial resources, the weight and the balance between own resources and debts. Congolese non-financial companies also have the alternative of turning to the opening of capital. This equity transaction consists of a company attracting new investors, in exchange exclusively for corporate securities. In the absence of securities markets, these companies are faced with the problem of finding new entrants into capital on their own. This research is complex because it is carried out on the over-the-counter market. This is why in the context of this article; we want to reflect on the following initial concern: What justifies the behavior of Congolese non-financial companies to constantly resort to external financing (formal or not)? The results of the study reveal that there is a significant relationship between the financing structure and the financial performance of Congolese non-financial companies, this relationship is nuanced by the market context which is characterized by the absence of a financial market and the existence of informal financing.Keywords: mode of financing, non-financial corporations, informal financing, compromise theory, security