Impact of Financial Risks on the Value of Moroccan Companies

Abdelmajid Ibenrissoul () and Zouigui Maroua ()
Additional contact information
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,

International Journal of Business and Social Research, 2015, vol. 5, issue 3, 82-94

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.

Keywords: Financial agency theory; financial risk; firm value; panel data (search for similar items in EconPapers)
JEL-codes: G10 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://thejournalofbusiness.org/index.php/site/article/view/727/511 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lrc:larijb:v:5:y:2015:i:3:p:82-94

Access Statistics for this article

More articles in International Journal of Business and Social Research from LAR Center Press
Bibliographic data for series maintained by Al Hossain ().