Capital Structure of Moroccan Non-Financial Listed Companies: Dynamic Analysis on Panel Data
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 4
Abstract
The question of choice of capital structure is one of the fundamental questions in the field of financial management. The purpose of this article is to study the factors determining the capital structure of Moroccan non-financial companies listed on the Casablanca Stock Exchange during the period 2003-2015. The sample includes 45 randomly selected companies. Based on previous empirical research, three blocks of exogenous variables were selected, business-related variables, macroeconomic variables, and those related to sectoral membership. The tests deployed concern stationarity, cointegration and dynamic estimation (DOLS) tests, taking into account two horizons (short term and long term). Our results are statistically significant in short term, and in long term. In addition, they support the theory of ordered preferences which states that firms prefer to be self-financing in the short term and not in the long term.
Authors and Affiliations
Mounir El Mrabit, Essaid Tarbalouti, Cheklekbire Malainine
Keywords
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- EP ID EP414877
- DOI 10.9790/5933-0904020311.
- Views 191
- Downloads 0
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