The problem of determining the cost of equity is crucial to the development of organizations. It is an essential means of calculating value creation. The financial literature has proposed several models for estimating the cost of equity, such as the capital asset pricing model (CAPM). However, this model is only used for listed companies, and cannot be used for unlisted companies. To remedy this situation, alternative measures of the cost of equity have emerged, such as accounting beta. The main objective of this research was to explore the relationship between market beta and accounting beta calculated using ROA, ROE and net income to demonstrate the ability of accounting beta to measure risk for unlisted companies. To carry out this study, we exploited data from a sample of 49 companies listed on the Casablanca Stock Exchange during the period of 2015–2019. We used panel data econometrics to empirically test the research hypotheses. The results show that the accounting beta calculated using ROA and ROE significantly represents the market beta and is a satisfactory solution to calculate the cost of equity of unlisted firms. The results of the study contribute to the existing literature on the cost of capital by reinforcing the role of accounting beta as a solution for determining the cost of equity and therefore the creation of value for the organization.

This article examines the impact of overconfidence, optimism, risk aversion, mimicry and intuition biases on the investment decisions of Moroccan SMEs managers. The study was based on a sample of 133 SMEs managers, who were randomly selected to ensure the representativeness of the results. Analysis showed that optimistic managers tend to make investment decisions more frequently, while those who are more risk-averse adopt a more cautious approach. Mimicry was also identified as an influential factor in investment decisions, with executives likely to be influenced by the choices of their peers. Furthermore, intuition bias was also identified as a positive factor in the investment decision-making process, enabling managers to capitalize on their experience and tacit knowledge for more appropriate and timely choices. However, overconfidence showed no significant effect on investment decisions. These findings have important implications for the managers of Moroccan SMEs, enabling them to better understand the factors influencing their investment decisions, and to optimize the allocation of their financial resources for the sustainable growth of their businesses.