Failure and Value Creation: A Discriminant Analysis Applied to Moroccan Industrial Companies Listed on the Casablanca Stock Exchange


  • Abdelkader Derbali Department of Administrative and Financial Sciences and Techniques, Community College, Taibah University, Saudi Arabia. Department of Management Sciences, Higher Institute of Informatics and Management of Kairouan, Kairouan University, Tunisia https://orcid.org/0000-0003-4098-3120
Keywords: value creation, failure, scoring, discriminant analysis

Abstract

This article purposes to assess the contribution of shareholder value creation as an explanatory variable for the failure of Moroccan industrial companies listed on the Casablanca stock exchange. It also offers a scoring that reflects the probabilities of the financial difficulties to occur. There were used data for 30 Moroccan industrial companies listed on the Casablanca stock exchange during the period of study from 2010 to 2018. Methodologically, a linear discriminant analysis was employed. The empirical results of the discriminant analysis applied during the period of 2010-2018 show that value creation, liquidity and the size of the company are the most determining variables in classifying companies according to the degree of financial difficulties. Thus, the results received make it possible to create a relationship among recurrent scientific knowledge about forecasting the companies’ failure and empirical findings in the context of Moroccan industrial companies listed on the Casablanca stock exchange.

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Published
2020-10-31
How to Cite
Derbali, A. (2020). Failure and Value Creation: A Discriminant Analysis Applied to Moroccan Industrial Companies Listed on the Casablanca Stock Exchange. Virtual Economics, 3(4), 7-28. https://doi.org/10.34021/ve.2020.03.04(1)
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Articles