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FirmÂ’s Capital Structure Determinants and Financing Choice by Industry in Morocco

Author

Listed:
  • Mouna Amraoui

    (School of management science, Wuhan University of Technology, Wuhan, China)

  • Ye Jianmu

    (School of management science, Wuhan University of Technology, Wuhan, China)

  • Kenza Bouarara

    (Faculty of Law, Economic and social science, Moulay Ismail University, Meknes, Morocco)

Abstract

The paper employs Panel regression approach to investigate capital structure impact on firmÂ’s performance in Morocco, Based on the result of Haussmann test, fixed effect fit the first model better; thus it was utilized to examine the capital structure determinants in Morocco firms. The annual data was collected from Moroccan authority of capital market and Casablanca stock exchange official website; it covers a period of eight years from 2009 to 2016 of 52 Moroccan companies. The results of this research conclude that out of seven variables there are four more significant ones, which are: return on asset, asset tangibility, size and liquidity, all of them have a negative impact, except for size is positively significant. Therefore, the main determinants of capital structure are firmsÂ’ specifics factors in Morocco and the choice of leverage is different from industry to another according to the specifics of its activity.

Suggested Citation

  • Mouna Amraoui & Ye Jianmu & Kenza Bouarara, 2018. "FirmÂ’s Capital Structure Determinants and Financing Choice by Industry in Morocco," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 4(3), pages 41-51, March.
    • Handle: RePEc:mgs:ijmsba:v:4:y:2018:i:3:p:41-51
    DOI: 10.18775/ijmsba.1849-5664-5419.2014.43.1005
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    Citations

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    Cited by:

    1. Yusheng Kong & Mary Donkor & Mohammed Musah & Joseph Akwasi Nkyi & George Oppong Appiagyei Ampong, 2023. "Capital Structure and Corporates Financial Sustainability: Evidence from Listed Non-Financial Entities in Ghana," Sustainability, MDPI, vol. 15(5), pages 1-20, February.
    2. Diby François Kassi & Dilesha Nawadali Rathnayake & Pierre Axel Louembe & Ning Ding, 2019. "Market Risk and Financial Performance of Non-Financial Companies Listed on the Moroccan Stock Exchange," Risks, MDPI, vol. 7(1), pages 1-29, February.
    3. Adepoju Adeoba Asaolu, 2021. "Capital Structure and Firm Performance: A comparative Study of Oil & Gas and Manufacturing Sectors in the United States of America," Business and Management Studies, Redfame publishing, vol. 7(1), pages 29-44, March.
    4. Raed Kanakriyah, 2020. "Factors Used to Determine the Financing Structure for Shareholding Companies Listed in Amman Stock Exchange in Jordan," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 462-474, July.

    More about this item

    Keywords

    Leverage choice; Firms specifics; Panel regression;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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