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Crony Interlockers and The Centrality of Banks: The Network of Moroccan Listed Companies

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  • Mohamed Oubenal

    (IRCAM)

Abstract

In this paper, we study crony capitalism through the lens of Moroccan listed companies and the role of the financial sector. We first highlight the role of banks in the history of Moroccan capitalism from the setting up of French protectorate over Morocco to the dominance of some major family groups. We then describe the concentration and the high profitability of the banking sector among listed companies. Using a network analysis of board members of the Moroccan listed companies we confirm the centrality of Finance compared to other sectors. We also measure the relational proximity to demonstrate that each cluster of the four main holding families has at least one financial company. Finally, we argue that crony interlockers, who are members of royal foundations and represent an institutional investor or a holding family that owns a bank and/or an insurance company, are the most central actors in the network of listed companies. Our contribution to crony capitalism in MENA countries analyses the politics of finance in a neoliberal and peripheral country such as Morocco. Boone and Henry (2004) had described the banking sector in Morocco as a private oligopoly. Here we evidence that the monarchy and its entourage are capturing corporate governance instruments such as board membership to control economic activities.

Suggested Citation

  • Mohamed Oubenal, 2016. "Crony Interlockers and The Centrality of Banks: The Network of Moroccan Listed Companies," Working Papers 1066, Economic Research Forum, revised 12 Jan 2016.
    • Handle: RePEc:erg:wpaper:1066
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    References listed on IDEAS

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    1. Béatrice Hibou & Mohamed Tozy, 2000. "Une lecture d'anthropologie politique de la corruption au Maroc : fondement historique d'une prise de liberté avec le droit," Revue Tiers Monde, Programme National Persée, vol. 41(161), pages 23-47.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. Rijkers, Bob & Freund, Caroline & Nucifora, Antonio, 2017. "All in the family: State capture in Tunisia," Journal of Development Economics, Elsevier, vol. 124(C), pages 41-59.
    4. Adam Hanieh, 2011. "Capitalism and Class in the Gulf Arab States," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-11960-4, December.
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    Cited by:

    1. Michael Siemon, 2018. "Price Synchronicity, Inter-Firm Networks, and Business Groups in the Middle East and North Africa," Working Papers 1267, Economic Research Forum, revised 10 Dec 2018.
    2. Brailly, Julien & Comet, Catherine & Delarre, Sébastien & Eloire, Fabien & Favre, Guillaume & Lazega, Emmanuel & Mounier, Lise & Montes-Lihn, Jaime & Oubenal, Mohamed & Penalva-Icher, Elise & Pina-Str, 2018. "Neo-structural economic sociology beyond embeddedness: Relational infrastructures and social processes in markets and market institutions," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 19(3), pages 36-49.
    3. Julien Brailly & Catherine Comet & Sébastien Delarre & Fabien Eloire & Guillaume Favre & Emmanuel Lazega & Lise Mounier & Jaime Montes-Lihn & Mohamed Oubenal & Elise Penalva-Icher & Alvaro Pina-Strang, 2018. "Neo-structural economic sociology beyond embeddedness: relational infrastructures and social processes in markets and market institutions," Post-Print hal-02943019, HAL.
    4. Julien Brailly & Catherine Comet & Sébastien Delarre & Fabien Eloire & Guillaume Favre & Emmanuel Lazega & Lise Mounier & Jaime Montes-Lihn & Mohamed Oubenal & Elise Penalva-Icher & Alvaro Pina-Strang, 2018. "Neo-structural economic sociology beyond embeddedness: relational infrastructures and social processes in markets and market institutions," SciencePo Working papers Main hal-02943019, HAL.

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