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Impact of Financial Risks on the Value of Moroccan Companies

Author

Listed:
  • Abdelmajid Ibenrissoul

    (Professor of Higher Education ENCG-Casablanca / Director-LAMIE Laboratory of Innovation Management and Economics,)

  • Zouigui Maroua

    (PhD student, University Hassan II Mohammedia-Casablanca ENCG / member of LAMIE,)

Abstract

This paper presents a study on the relationship between the value of the firm and the financial risks based on a sample of Moroccan companies listed on the Casablanca Stock Exchange. The financial risks are mainly; market risk, exchange rate risk, rate risk, and commodity risk. The empirical results show that 35% of Moroccan companies are sensitive to changes of financial instruments for the period between May 2013 to April 2014.The results also show that the sensitivity of firms depends on the nature of the activity and the degree of their openness on the international market. A cross-sectional analysis by activity sector of the sensivity determinants to the variations of the financial risks is also considered to answer the question, and the results suggest that the most sensitive areas are the telecommunication sector, followed by the building and public works sector, then the transport sector.

Suggested Citation

  • Abdelmajid Ibenrissoul & Zouigui Maroua, 2015. "Impact of Financial Risks on the Value of Moroccan Companies," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 5(3), pages 82-94, March.
    • Handle: RePEc:mir:mirbus:v:5:y:2015:i:3:p:82-94
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    File URL: http://thejournalofbusiness.org/index.php/site/article/view/727/511
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    References listed on IDEAS

    as
    1. Stephen A. Ross, 2013. "The Arbitrage Theory of Capital Asset Pricing," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 1, pages 11-30, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. 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.

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    More about this item

    Keywords

    Financial agency theory; financial risk; firm value; panel data;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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