Title: Corporate governance and its effects on perceived performance in Morocco: the mediating role of venture capitalists' strategic and managerial involvement

Authors: Slimane Ed-Dafali; Brahim Bouzahir; Amina Omrane

Addresses: National School of Commerce and Management-ENCG, El Jadida, Chouaib Doukkali University of Morocco, Ahmed Chaouki Avenue and Road of Fès, PB.122, El Jadida 24000, Morocco ' National School of Commerce and Management-ENCG, El Jadida, Chouaib Doukkali University of Morocco, Ahmed Chaouki Avenue and Road of Fès, PB.122, El Jadida 24000, Morocco ' Faculty of Economics and Management-FSEG, Sfax, University of Sfax, Road of the Airport, Km 4, PB.14, Sfax 3018, Tunisia

Abstract: The current research investigates the effects of the governance relationship between capital-investors and entrepreneurs of financed companies on their perceived performance. For this purpose, two variables related to trust and frequency interaction are taken into consideration. Besides, the mediating role of venture capitalists' strategic and managerial involvement is assessed. The conceptual proposed model is tested in the Moroccan context, via the structural equations' method under the approach of partial least squares (PLS) regression. Results indicate that interaction frequency and trust between stakeholders enhance the performance of the venture capital (hereafter VC)-backed firms. Moreover, interaction frequency and trust are significantly related to the managerial and strategic roles of venture capital firms. Findings highlight also the importance of these strategic roles in improving business performance. However, they do not reveal a direct relationship between managerial VCs' roles and the perceived performance of portfolio companies.

Keywords: corporate governance; frequency interaction; venture capitalists; VCs; VCs' involvement; trust; perceived performance; venture capital; VC; VC-backed firms; Morocco.

DOI: 10.1504/IJBG.2022.122661

International Journal of Business and Globalisation, 2022 Vol.30 No.2, pp.166 - 186

Received: 15 May 2019
Accepted: 13 Jun 2019
Published online: 05 May 2022 *

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