SHAREHOLDER POWER AND VALUE CREATION IN LISTED COMPANIES IN MOROCCO

Abstract

The purpose of our article is to highpoint the impact of determinants of shareholder power on value creation in Moroccan companies listed on the Casablanca Stock Exchange. These determinants mainly concern the shareholding structure and control levers. To maintain harmony between the interest of our subject and the methodological approach, we developed a conceptual model consisting of explanatory variables, control variables, and the explained variable. It was tested on 212 observations taken from the data of companies listed on the Casablanca stock exchange over five years (between 2016 and 2020). The results show that increasing the power of block-holders does not adversely affect value creation as measured by Tobin’s Q. However, it does have a negative impact when a single-family shareholder is in power. The use of debt as a method of financing gives a positive signal to investors, which improves the process of value creation. With regard to the separation of power and control, the results show that this separation has a positive effect on value creation.