Exploring fundamental anomalies: Evidence from the Moroccan stock market

Fundamental anomalies are explored, for the first time, in the Moroccan stock market. The sample includes non-financial companies from July 2001 to June 2020. We carry out, initially, sorts of returns on anomaly indicators, then, we follow through a regression analysis using a fixed-effect model an...

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Main Authors: Safae Benfeddoul, Asmâa Alaoui Taïb
Format: Article
Language:English
Published: Modern Finance Institute 2024-12-01
Series:Modern Finance
Subjects:
Online Access:https://mf-journal.com/article/view/192
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author Safae Benfeddoul
Asmâa Alaoui Taïb
author_facet Safae Benfeddoul
Asmâa Alaoui Taïb
author_sort Safae Benfeddoul
collection DOAJ
description Fundamental anomalies are explored, for the first time, in the Moroccan stock market. The sample includes non-financial companies from July 2001 to June 2020. We carry out, initially, sorts of returns on anomaly indicators, then, we follow through a regression analysis using a fixed-effect model and the system generalized method of moments methodology. The findings emphasize a significantly positive relationship between returns and the book-to-market ratio and a significantly negative relationship between returns and each of the price-to-earnings and the price-to-cash flow ratios. Regarding the size and the leverage effects, the findings highlight their absence. Finally, we cannot ascertain the existence of a positive or negative price-to-sales effect considering the contradictory results of the tests.
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series Modern Finance
spelling doaj-art-7f7f3ae68e6e4b29a30f7fae39141dbd2024-12-12T15:11:38ZengModern Finance InstituteModern Finance2956-77422024-12-012210.61351/mf.v2i2.192Exploring fundamental anomalies: Evidence from the Moroccan stock marketSafae Benfeddoul0Asmâa Alaoui Taïb1The National School of Business and Management, Sidi Mohamed Ben Abdellah University, Fez, MoroccoThe National School of Business and Management, Sidi Mohamed Ben Abdellah University, Fez, Morocco Fundamental anomalies are explored, for the first time, in the Moroccan stock market. The sample includes non-financial companies from July 2001 to June 2020. We carry out, initially, sorts of returns on anomaly indicators, then, we follow through a regression analysis using a fixed-effect model and the system generalized method of moments methodology. The findings emphasize a significantly positive relationship between returns and the book-to-market ratio and a significantly negative relationship between returns and each of the price-to-earnings and the price-to-cash flow ratios. Regarding the size and the leverage effects, the findings highlight their absence. Finally, we cannot ascertain the existence of a positive or negative price-to-sales effect considering the contradictory results of the tests. https://mf-journal.com/article/view/192Fundamental anomaliesfixed-effect modeldynamic panel modelSGMM methodologyMoroccan stock marketsize effect
spellingShingle Safae Benfeddoul
Asmâa Alaoui Taïb
Exploring fundamental anomalies: Evidence from the Moroccan stock market
Modern Finance
Fundamental anomalies
fixed-effect model
dynamic panel model
SGMM methodology
Moroccan stock market
size effect
title Exploring fundamental anomalies: Evidence from the Moroccan stock market
title_full Exploring fundamental anomalies: Evidence from the Moroccan stock market
title_fullStr Exploring fundamental anomalies: Evidence from the Moroccan stock market
title_full_unstemmed Exploring fundamental anomalies: Evidence from the Moroccan stock market
title_short Exploring fundamental anomalies: Evidence from the Moroccan stock market
title_sort exploring fundamental anomalies evidence from the moroccan stock market
topic Fundamental anomalies
fixed-effect model
dynamic panel model
SGMM methodology
Moroccan stock market
size effect
url https://mf-journal.com/article/view/192
work_keys_str_mv AT safaebenfeddoul exploringfundamentalanomaliesevidencefromthemoroccanstockmarket
AT asmaaalaouitaib exploringfundamentalanomaliesevidencefromthemoroccanstockmarket