Title: External factors of going public in the Casablanca Stock Exchange

Authors: Zakaria Salhi; Hicham Ouakil

Addresses: Faculty of Economics and Management, Ibn Tofail University, Kenitra, Morocco ' Faculty of Economics and Management, Ibn Tofail University, Kenitra, Morocco

Abstract: This study examines the effect of external factors on initial public offerings (IPOs) activity within the Moroccan stock market from 1994 to 2022. Applying a nonlinear autoregressive distributed lag model (NARDL) to the macroeconomic variables (GDP growth rate, stock market index return, Treasury bill rate, turnover ratio), our findings reveal asymmetric long and short-run models, indicating that all four variables affect the number of IPOs. Remarkably, the market liquidity, stock market index return and the Treasury bill rates exhibit a significant effect on both long and short-run models, while GDP positively influences the number of IPOs in the short run. To ensure the robustness of our results, we conducted a quantile ARDL model, confirming the asymmetry of these variables. The findings highlight the role of macroeconomic factors in shaping the Moroccan financial market's development and their impact on companies' decisions to go public. Therefore, policymakers, managers, and investors should pay greater attention to stock market performance and liquidity, given their significant influence on the timing of IPO activities.

Keywords: initial public offerings; IPOs; macroeconomic determinants; Casablanca Stock Exchange; NARDL; quantile ARDL.

DOI: 10.1504/AAJFA.2025.149803

Afro-Asian Journal of Finance and Accounting, 2025 Vol.15 No.6, pp.689 - 706

Received: 28 Dec 2023
Accepted: 13 Jun 2024
Published online: 13 Nov 2025 *

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