Soumia El Alaoui

Type of the article: Research Article

Abstract
This article focuses on small and medium-sized enterprises operating in environments characterized by increased financial and institutional constraints. The literature on this type of organization has mainly concentrated on traditional accounting performance indicators, such as return on assets or return on equity, while economic value creation that explicitly incorporates the cost of capital remains largely unexplored. The objective of this study is to analyze the impact of corporate governance mechanisms on value creation within Moroccan SMEs. The study is based on a sample of 31 SMEs observed over the period 2015–2023, representing 279 observations. Value creation is measured using Economic Value Added, calculated from a cost of capital estimated using an accounting beta, adapted to unlisted companies. Estimates are made using a Feasible Generalized Least Squares model. The results show that board size has a positive and significant effect on value creation (β = 0.495; p = 0.010), as does the level of education of board members (β = 3.690; p < 0.001). On the other hand, family ownership is negatively associated with value creation (β = −1.934; p = 0.008). The age of a CEO, dual roles, and the frequency of board meetings do not have a statistically significant effect. These results highlight the decisive role of human capital in generating economic value within SMEs in emerging economies.