Econometric analysis of the impact of exchange rate variations on the market value of Morocco's non-financial firms

ABSTRACT Morocco has begun the process of loosening its exchange rate regime in an international setting characterized by macroeconomic instability. This move could raise exchange rate volatility and expose businesses to more currency rate risk. This study examines the impact of these oscillations on the listed non-financial companies' value and pinpoints the primary causes of this exposure. We processed data from 49 non-financial companies listed on the CSE for the period from January 2018 to December 2021 in order to evaluate this impact. Exchange rates, stock prices, and other financial indicators are included in the data. According to the findings, 14.28% of businesses have a sizable foreign exchange risk exposure. The size of the organization, its export rate, and its debt load are the primary elements that explain this exposure. The significance of foreign exchange risk management techniques tailored to the contemporary foreign exchange market dynamics is shown by these findings. KEYWORDS : Exchange rates ; Exchange rate regime ; Firm value ; Exchange rate exposure.