This study aims to investigate the moderating role of sustainable development in the relationship between accounting information, financial decisions and stock market valuation among Moroccan firms listed on the Casablanca Stock Exchange.
A multiple regression approach is used on a panel data set of 38 listed firms from four strategic sectors (real estate, energy, consumer goods and transportation) over the 2021–2023 period. Two econometric models are estimated: one excluding and the other including sustainability, proxied by a firm’s inclusion in the Moroccan All Shares Index environmental, social and governance (ESG) index.
In the baseline model, market value is significantly driven by equity and short-term debt. Once sustainability is accounted for, long-term debt and dividend policy emerge as key valuation drivers. These findings suggest an evolving investor preference toward firms integrating environmental and social responsibility into their financial strategies.
The integration of sustainable practices constitutes a strategic lever for enhancing firm value. Companies that align long-term financing decisions with ESG commitments may benefit from a sustainability premium in capital markets. Corporate governance should thus evolve to align profitability objectives with broader sustainability goals. For investors, ESG criteria are increasingly central in portfolio optimization and risk assessment.
By demonstrating the valuation impact of sustainability in an emerging market context, the study encourages a reallocation of financial capital toward responsible firms. It promotes enhanced transparency, reinforces stakeholder trust and incentivizes firms to adopt environmentally and socially responsible practices. This contributes to more inclusive economic development and long-term social value creation.
This research addresses a key gap in the literature by exploring the moderating effect of sustainability on the value relevance of financial metrics in a North African emerging economy. It provides empirical evidence with implications for ESG-integrated valuation models and policy frameworks in similar institutional settings.
