the sum of suppliers debts reported to the total assets.
Profitability: is an indicator of the ability of the company to generate profits from its investments. These gains have a significant impact on the financial choice in companies. In our model, we measure profitability with net income divided by total assets.
Liquidities: highlight the existence of liquidity at the company. They indicate whether the company has internal resources. These liquidities in the hands of managers are not without impact on debt policy. According to Hirth and Uhrig-Homburg (2010), liquid funds represent a decision variable on the level of debt. Liquidity is measured by the amount of liquidity and equivalent liquidity reported on total assets.
The size: the size of the company is one of the most discriminating factors when granting loans by banking institutions (Bradley et al., 1984; Long & Malitz, 1985; Harris & Raviv, 1991; Rajan & Zingales, 1995). Hadlock and Pierce (2010) suggest that the size and age of the company are good indicators of the level of financial constraints. To measure the size, several indicators have been used in the empirical literature, such as the logarithm of turnover, number of employees, the amount of fixed assets, etc. In our study, we use the logarithm of total assets according to Bédué and Levy (1997) and Mateev et al. (2013)