Impact of Financial Risks on the Value of Moroccan Companies

Authors

  • Maroua Zouigui PhD student at the University Hassan II Mohammedia-Casablanca ENCG / member of -LAMIE-Laboratory of Innovation Management and Economics
  • Abdelmajid Ibenrissoul Professor of Higher Education ENCG-Casablanca / Director-LAMIE- Laboratory of Innovation Management and Economics

DOI:

https://doi.org/10.18533/ijbsr.v5i3.727

Keywords:

Financial agency theory, financial risk, firm value, panel data.

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.

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Published

2015-04-06

Issue

Vol. 5 No. 3 (2015): March

Section

Article

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