Submitted By:
Sanae Ait Jillali
Research Laboratory in Finance, Audit and Governance of Organizations-LRFAGO, National School of Commerce and Management (ENCG), Hassan 1st University, Settat, Morocco
Article
The IPO such as a strategic decision that affects the company on several levels, particularly organizational and managerial, is a subject that preoccupies a multitude of researchers and specialists. Such a decision according to several authors has an impact on firms’ performances, it is taken in the case of companies with high expectations: notoriety, liquidity, diversification, bargaining power, etc. It can also be favorable at the organizational level in the control and supervision of companies and more particularly with regard to the manager by limiting his discretionary behavior and the phenomena related to the latter, among others; information asymmetry and agency conflicts. Knowing that the subject of a firm’s performance remains constantly a concern to managers notably for a developing country namely Morocco, we are all aware that the Covid19 pandemic has generated the brisk change, it’s wreak havoc through which the whole world is experiencing a social, economic, health, and other kinds of crisis following the different decisions and measures that have been taken in many countries to deal with the new situation, trying to resolve and control the spread of the virus, including; the lockdown and the suspension of certain companies’ activities, also the new dispositions to avoid the gatherings of people and limit the extension of the deadly virus. Genuinely, the Covid19 each time with its new variant is becoming a habit. Currently, it is not only the people who are getting their vaccination but also the governments began to have their own jab of immunity against the virus and its unpredictable surprises. Before the pandemic, subsequent to the new general regulations, the Casablanca Stock Exchange has created in 2019 the alternative market for SMEs with its eased and flexible admission conditions to facilitate access for SMEs to the stock market with a view of creating a source of funding by the market for this dominant business category in Morocco, This market in 2021 recorded only 3 values, since it has just been created, and not only Morocco, but the whole world was and still experiencing an economic and financial crisis following the suspension of activity of certain companies. Following this good gesture for small businesses and interests in that kind of firms, we can pronounce and express our opinion in accordance with the perception of several experts that on a strictly technical level, on the appearance aspect or even on the regulatory aspect, the Casablanca Stock Exchange today meets the best international standards with the new structure and the creation of the alternative market. Regarding the first two plans aforementioned, the CSE has almost nothing to envy the stock exchanges of the most developed countries. However, the content and the results recorded are still insufficient (referring to the technical reports and statistics on the site of the Moroccan Capital Market Authority (AMMC) and the CSE). The solution according to the specialists of the Moroccan capital market is to find a way to drain companies on the Casablanca Stock Exchange. It is in this era that the Moroccan kingdom with its new development model (NMD) is trying to give another energy and revitalize the IPO market at the level of the CSE for the purpose of post coronavirus health crisis economic recovery. Following the objective to reach a number of 300 listed companies by 2035 in addition to the 76 that exist in February 2022. The CSE launches a seduction campaign in favor of companies to attract more and more firms to the capital market taking into consideration their characteristics in addition to the Moroccan context, so more efforts are being made in raising awareness and disseminating information on the usefulness of the stock market through the NMD. Via our exploratory study, we are trying to constitute a frame of reference to prepare the ground for research on the subject of the financial performance of Moroccan listed firms following Initial Public Offerings. We envisage emphasizing briefly the impact of the going public decision on the firms’ financial performances, which has been analyzed in different stock markets over the world, and related to specific theories, among others; the theory of the agency and the timing of the market theory (founded on the assumption of earnings management), in addition to the signal theory. Our study will bring a more holistic and integrated view of the relationship between IPO and performance exposed to the Moroccan context and reality, which could encourage companies regardless of their structure or their line of business to head to the stock market and take that step towards the decision to go public. For further details and updates on the studies carried out, I invite you to consult my ORCID profile.
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