Impact of Dividends, Revenue, and Net Income on the Market Capitalization of Companies Listed on the Casablanca Stock Exchange (Morocco)

Résumé

This study examines the relative impact of dividends, net income, and revenue on the market capitalization of firms listed on the Casablanca Stock Exchange. Drawing on dividend relevance theory, signaling theory, agency theory, and the Modigliani–Miller framework, the research investigates whether payout policy and firm scale exert valuation effects beyond profitability in an emerging-market context. Using cross-sectional data for Moroccan listed firms in 2024, the empirical analysis shows that net income constitutes the primary determinant of market capitalization. Dividends retain a statistically significant effect even after controlling for profitability and revenue, suggesting an incremental signaling role. Revenue, while positively associated with market value, exhibits a comparatively weaker influence, indicating that scale alone does not drive valuation unless translated into earnings. The findings highlight a hierarchical valuation structure in the Moroccan stock market, where profitability dominates, dividends reinforce investor confidence, and revenue plays a supportive role. These results contribute to the debate on dividend irrelevance versus dividend relevance in emerging markets and provide updated empirical evidence on valuation drivers within the institutional setting of Morocco.