The Impact of Initial Public Offerings on Corporate Performance: Evidence from Morocco's Vocational Training and Sectoral Education Markets in Health, Finance, and Business

The Impact of Initial Public Offerings on Corporate Performance: Evidence from Morocco's Vocational Training and Sectoral Education Markets in Health, Finance, and Business

Article Number: e2025504. | Available Online: October 2025 | DOI: 10.22521/edupij.2025.18.504

Massiki Ayoub , Metwalli Olaya , Dib Salma , Bahida Hicham , Ziky Rachid , Chakra Raja , Oulamine Ayoub , Bennani Fatima Zahra

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Abstract

Background/purpose. This study investigates the impact of initial public offerings (IPOs) on the economic performance of Moroccan companies operating in the vocational training and sectoral education markets, specifically in the health, finance, and business sectors. The objective is to evaluate how going public influences firm-specific variables such as size, leverage, and revenue growth, with a particular focus on profitability, capital structure, and valuation.

Materials/methods. Grounded in financial theories, including capital structure theory, corporate governance, and market efficiency, the research draws on agency theory and signaling theory to explain the mechanisms through which IPOs influence corporate outcomes. The empirical analysis employs a combination of econometric models, namely the Generalized Linear Model (GLM), Cross-Sectional Autoregressive Distributed Lag (CS-ARDL), and Ordinary Least Squares (OLS), to capture both short-term and long-term dynamics.

Results. The findings suggest that IPOs tend to enhance economic profitability, particularly in the long term, as evidenced by improved Return on Assets (ROA). This improvement is primarily attributed to more effective management of firm size and debt. However, the results also indicate that excessive leverage has a negative impact on long-term performance. Beyond financial outcomes, the study highlights the importance of considering the social and educational missions of these firms. Performance is influenced not only by classical financial indicators but also by factors such as educational quality, student learning outcomes, graduate employment rates, student satisfaction, and alignment with sectoral and labour market objectives. Evaluating the success of vocational and sectoral education institutions solely on financial criteria is insufficient.

Conclusion. This study offers practical insights for education-focused firms aiming to optimize IPO outcomes. It emphasizes the importance of strategic management of growth, capital structure, and market risk exposure while maintaining mission-driven objectives that balance financial sustainability with social and educational impact

Keywords: Initial public offering, profitability, capital structure, econometric methods, vocational training, sectoral education, corporate performance

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