Theoretical corporate finance techniques used by Moroccan listed firms

Dissertant

al-Alami, Ala al-Din

Thesis advisor

Bin Jilun, Hisham Abd al-Wahhab

University

Al Akhawayn University

Faculty

The School of Business Administration

University Country

Morocco

Degree

Master

Degree Date

2013

English Abstract

The goal of this paper is to study the application of corporate finance theories among twenty-nine companies listed in Casablanca Stock Exchange.

The survey used to collect the information is based on Graham and Harvey’s (2001) questionnaire carried out to CFOs in the United States.

Brounen, De Jong and Koedijk (2004) in Europe, Chazi, Terra and Zanella (2010) in Middle East region and Seven-Olov and Hartwig (2012) in Sweden also used the survey.

Using the same survey as all the studies above helped in comparing the findings with the different results of those studies.

The study is composed of three sections investigating the capital budgeting practices, cost of capital and finally the capital structure.

Overall, the most interesting remark is that most corporate finance methods used by Moroccan financial officers is similiar to the methods used by managers in the Midlle East region, to some extent American CFOs, yet, differente from the European managers.

The Net Present Value is the most used method in project evaluation followed by the Internal Rate of Return and payback period approach.

The cost of capital in Morocco is estimated using the Capital Asset Pricing Model and companies prefer to use company-wide discount rate and overseas dicount rate for their projects in foreign market.

Finally,interest rate deductibility advantage, the financial flexibility and getting the lowest interest rate are the most important factors in determining the capital structure for the Moroccan companies.

Main Subjects

Business Administration

No. of Pages

41

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-626688