Foreign or local : who are better governors ? : evidence from the Casablanca stock exchange

Dissertant

Ammur, Zaynab

Thesis advisor

Faruq, Umar

University

Al Akhawayn University

Faculty

The School of Business Administration

University Country

Morocco

Degree

Master

Degree Date

2009

English Abstract

This paper aims to identify the relationship between the identity of the largest owner of the firm and the governance practices adopted by their firms.

Using the ownership data for all the firms listed at the Casablanca Stock Exchange during the period between 2004 and 2007, we show that firms with local institutions as the largest owners pay higher proportion of their earnings as dividends relative to the other firms.

We also show that there is higher likelihood that these firms – firms with local institutions as the largest owners – get audited by big-four than the other firms.

Our results document no significant difference in the dividend payout of firms with foreign institutions as the largest owner and the other firms.

The same was observed for the choice of auditors for these firms.

Our study has implication for investors and analysts in a way that they contradict the conventional wisdom of associating foreign owners with better governance mechanisms.

Main Subjects

Financial and Accounting Sciences

Topics

• Investments
• Morocco

No. of Pages

31

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-624898