Tunisian corporate bond market liquidity: a qualitative approach
Qualitative Research in Financial Markets
ISSN: 1755-4179
Article publication date: 1 February 2023
Issue publication date: 2 November 2023
Abstract
Purpose
This study aims to explore the failures of Tunisian secondary corporate bond market liquidity to understand the determinants of corporate bond market liquidity at large.
Design/methodology/approach
We adopted a qualitative approach to studying the Tunisian Stock Exchange. Dealers’ perceptions were collected through semi-structured face-to-face interviews; the data was recorded, transcribed and thematically analysed.
Findings
Secondary corporate bond market failures are due, in part, to microstructural choices – especially the use of an over-the-counter market as a trading venue. The absence of a corporate bond yield curve, a narrow investor base, market participants’ lack of financial education and authorities’ attitudes are equally responsible.
Research limitations/implications
This study is useful to researchers, policymakers and practitioners, as it identifies microstructural and other factors affecting the Tunisian secondary corporate bond market. We interviewed only Tunisian dealers while ignoring other categories of market participants. Furthermore, a focus group discussion could have improved our understanding of the determinants of the Tunisian secondary corporate bond market.
Originality/value
This paper aimed to qualitatively discuss several issues related to the Tunisian secondary corporate bond market. To date, little academic research has addressed this topic in the illiquid and non-transparent corporate bond markets.
Keywords
Acknowledgements
The authors would like to thank Hearst university for funding the proofreading. Detailed feedback by the journal’s Editor and two anonymous referees who have significantly improved the paper is greatly appreciated.
Citation
Berrich, O. and Dabbou, H. (2023), "Tunisian corporate bond market liquidity: a qualitative approach", Qualitative Research in Financial Markets, Vol. 15 No. 5, pp. 795-819. https://doi.org/10.1108/QRFM-04-2021-0057
Publisher
:Emerald Publishing Limited
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