Mohammed Ibrahimi

Type of the article: Research Article

Abstract
Earnings management remains a persistent concern in African markets, particularly in environments where ownership structures are concentrated and regulatory frameworks are still evolving. This study examines how different forms of ownership shape earnings management practices in Morocco, using a panel of 34 non-financial firms listed on the Casablanca Stock Exchange over the period 2018–2022. Earnings management is measured through discretionary accruals estimated using the performance-adjusted Kothari model, and the empirical analysis relies on a two-step GMM estimator. The findings reveal a heterogeneous impact of ownership structure on earnings management. Institutional ownership and foreign ownership are both negatively associated with earnings management, indicating that firms with stronger institutional or international participation tend to exhibit more discipline in financial reporting. In contrast, family ownership and managerial ownership are positively associated with earnings management, suggesting a greater propensity for discretionary accounting practices in firms where control or decision-making power is concentrated among family members or managers. State ownership and ownership concentration do not exhibit significant effects, pointing to a limited role of public participation or dominant shareholders in constraining reporting discretion. These findings highlight that ownership composition is a key determinant of reporting behavior in the Moroccan context, with clear differences between monitoring shareholders and controlling shareholders.

Acknowledgments
This research was supported by the National Center for Scientific and Technical Research (CNRST) as part of the “PhD-Associate Fellowship – PASS” program, awarded to Aymane Chemmaa.