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Capital expenditure and firm value in the MENA region: the role of market competition and information asymmetry

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  • Harit Satt
  • Youssef Chetioui
  • Omar Ouahidi
  • Virginia Bodolica
  • Diae Lamiri

Abstract

This paper examines the relationship between capital expenditure and firm value in the MENA region, and the moderating role that market competition and information asymmetry play in this relationship. The study consists of 3,930 observations that include yearly data from the 2010–2019 period. Empirical tests show that in markets of high product competition, capital expenditure exerts a negative effect on firm value, while under the condition of high information asymmetry, this effect is positive. The results also suggest that the hypothesized relationships are stronger for small-sized firms and for Shariah-non-compliant companies.

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  • Harit Satt & Youssef Chetioui & Omar Ouahidi & Virginia Bodolica & Diae Lamiri, 2025. "Capital expenditure and firm value in the MENA region: the role of market competition and information asymmetry," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 18(1), pages 138-157, January.
    • Handle: RePEc:taf:macfem:v:18:y:2025:i:1:p:138-157
    DOI: 10.1080/17520843.2022.2163564
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