The Macroeconomic Determinants of Moroccan Corporate Bankruptcy

Abstract

The absence of prior research in Morocco using the macroeconomic explanatory approach to bankruptcy, combined with the new peak in business failure in Morocco in 2021, motivates the need to explore the influence of macroeconomic indicators on the Moroccan bankruptcy rate. Therefore, the objective of this article is to examine the impact of these indicators on the Moroccan bankruptcy rate using multiple regression models over the period 2010-2021. The obtained results show that new firm creation and the interest rate positively and significantly affect the bankruptcy rate, while Euro and Dollar exchange rates have negative and significant effects on the dependent variable. The results suggest guidelines for policymakers and practitioners to refine the economic conditions in order to achieve a low bankruptcy rate in Morocco.