Department of Economic Competitiveness and Managerial Performance, Faculty of Law, Economic and Social Sciences—Souissi, Mohammed V University, Rabat 10112, Morocco
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Accounting Beta as a Risk-Mapping Criterion: The Casablanca Stock Trade-off as an Example
Author(s): Mohammed Faiteh*
To the development of organisations, the issue of calculating the cost of equity is essential. It is a crucial tool for figuring out value production. For
assessing the cost of equity, a number of models have been presented in the financial literature, such as the capital asset pricing model (CAPM).
This paradigm, however, is only applicable to publicly traded businesses; it is inapplicable to privately held businesses. Alternative measurements
of the cost of equity have arisen to address this issue, including accounting beta. This study's major goal was to examine the correlation between
market beta and accounting beta, which was computed using ROA, ROE, and net income, in order to show how accounting beta may be used to
gauge risk for privately held businesses. This study was conducted using information from a Selection of 49 firms that were listed between 2015
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DOI:
10.37421/2169-026X.2022.11.367
Entrepreneurship & Organization Management received 1115 citations as per Google Scholar report