Youssef Benabdennbi and Amal Atrakouti
This research paper looks at the impact of the announcement of profit warnings by Moroccan companies on their stock prices. The sample used in this study consists of 71 profit warnings from 35 companies listed in the Casablanca Stock Market. The paper uses the market model from the simple event study methodology in order to look at the fluctuations of companies’ abnormal returns, cumulative abnormal returns. From the analysis of five different variables, dummy, and control, we look at the relationship and the behavior of the stock prices using a regression model. This paper, using the event study methodology, looks at the efficiency of the Moroccan market and measures its significance using a t-test. Our research is considered to be a first for the topic of profit warnings in the MENA region and Morocco.