Valuation of Listed Family Businesses: A Study of the Moroccan Financial Market (African Scientific Journal)

Summary

• Long-term CS-ARDL econometric estimations show a positive and significant relationship between the general market environment (0.039) and stock performance, as well as trading liquidity (4.212).p.20
• Share price volatility negatively affects long-term stock returns, showing a statistically significant coefficient of -0.032 in the CS-ARDL estimation.p.20
• Family businesses represent nearly 80% of the Moroccan entrepreneurial landscape and make a major contribution to employment and GDP.p.27

Key insights

1. Stock market conditions at the time of an IPO strongly influence a family firm's long-term equity returns.p.5
2. Higher post-listing share liquidity is associated with enhanced long-term stock market performance.p.5
3. Significant stock price volatility following listing negatively impacts future long-term share returns.p.5
4. Family businesses in Morocco often maintain cautious management and show reluctance to dilute family control through public offerings.p.28
5. Short-term error correction models show a high speed of adjustment (92% per period in CS-ARDL) towards long-term equilibrium.p.21
6. Generalized Linear Model (GLM) results confirm that overall market conditions (+1.440712) have the strongest positive effect on stock returns.p.23
7. Low transaction volume on the Casablanca Stock Exchange remains a primary structural constraint for listed family-owned firms.p.28
8. Improving corporate governance practices and financial reporting transparency helps reduce market uncertainty and stabilize share prices.p.29