Anouar Faiteh

Type of the article: Research ArticleAbstractThis article focuses on small and medium-sized enterprises operating in environments characterized by increased financial and institutional constraints. The literature on this type of organization has mainly concentrated on traditional accounting performance indicators, such as return on assets or return on equity, while economic value creation that explicitly incorporates the cost of capital remains largely unexplored. The objective of this study is to analyze the impact of corporate governance mechanisms on value creation within Moroccan SMEs. The study is based on a sample of 31 SMEs observed over the period 2015–2023, representing 279 observations. Value creation is measured using Economic Value Added, calculated from a cost of capital estimated using an accounting beta, adapted to unlisted companies. Estimates are made using a Feasible Generalized Least Squares model. The results show that board size has a positive and significant effect on value creation (β = 0.495; p = 0.010), as does the level of education of board members (β = 3.690; p < 0.001). On the other hand, family ownership is negatively associated with value creation (β = −1.934; p = 0.008). The age of a CEO, dual roles, and the frequency of board meetings do not have a statistically significant effect. These results highlight the decisive role of human capital in generating economic value within SMEs in emerging economies.

Type of the article: Research ArticleCorporate governance mechanisms have progressively played a crucial role in value creation, particularly in emerging markets where there is information asymmetry and agency issues. They have been considered strategic levers for enhancing the value creation of firms. Of these mechanisms, the audit committee is identified as a crucial asset for facilitating good corporate governance in firms. This study examines how the characteristics of the audit committee influence value creation in Moroccan public firms. panel data for 44 Casablanca Stock Exchange listed companies between 2022 and 2024, we use static panel regression models to investigate the relationship between audit committee attributes and two value creation proxies: market value added (MVA) and return on equity (ROE). The results show that independence, skill, size, and frequency of audit committee meetings all play significant roles in greater value creation. Particularly, independence has the most significant positive effect on MVA and ROE. The expertise of the committee has a positive effect on MVA, while its size has a positive effect on both indicators. Meeting frequency significantly improves ROE but makes no difference to MVA. These results suggest that effective audit committees are excellent governance mechanisms capable of reducing information asymmetries, enhancing the quality of financial reporting, and thereby building shareholder value in the Moroccan context.

The problem of determining the cost of equity is crucial to the development of organizations. It is an essential means of calculating value creation. The financial literature has proposed several models for estimating the cost of equity, such as the capital asset pricing model (CAPM). However, this model is only used for listed companies, and cannot be used for unlisted companies. To remedy this situation, alternative measures of the cost of equity have emerged, such as accounting beta. The main objective of this research was to explore the relationship between market beta and accounting beta calculated using ROA, ROE and net income to demonstrate the ability of accounting beta to measure risk for unlisted companies. To carry out this study, we exploited data from a sample of 49 companies listed on the Casablanca Stock Exchange during the period of 2015–2019. We used panel data econometrics to empirically test the research hypotheses. The results show that the accounting beta calculated using ROA and ROE significantly represents the market beta and is a satisfactory solution to calculate the cost of equity of unlisted firms. The results of the study contribute to the existing literature on the cost of capital by reinforcing the role of accounting beta as a solution for determining the cost of equity and therefore the creation of value for the organization.