Abstract
Most studies that have investigated the relationship between governance and performance of banks were interested in the developed countries and to a lesser extent, the emerging countries. In this study, we tried to look from an empirical perspective, at the impact of governance through some internal mechanisms, on the performance of banks in a developing country like Tunisia. According to Kolsi and Ghorbel (2011), the effect of governance on the financial and stock market performance is still unknown. This result goes in the same direction as that of Adjaoud et al. (journal compilation 15, 2007), leading to the lack of connection between governance and traditional performance measures. The empirical analysis is performed on a sample of eight Tunisian commercial banks listed on the Stock Exchange over the period 2000–2011; we can conclude that there is no standard governance structure and that each bank should adopt the appropriate governance structure to improve the performance of the financial market, in general, and the banking market, in particular. The verification of this central assumption in the Tunisian context, therefore, is the fundamental contribution of this study. It is for this reason that the results we, even modest, have achieved allow enriching the issue of the impact of some governance variables varying according to the chosen performance measurement, which is a neglected theme in the Tunisian context.
Highlights
The appearance of the theme of governance is assigned to the debate opened by Berle and Means (1932) who were executed after the 1929 crisis
Empirical studies considering the relationship between internal governance mechanisms, essentially the board of directors, ownership structure, and performance are very limited in terms of emerging countries in the case of banks (Arun and Turner 2004)
The choice of a model Bpreferred^ to determine the extent of the banking efficiency was not about agreement between the researchers saw that the actual level of bank efficiency is unknown
Summary
The appearance of the theme of governance is assigned to the debate opened by Berle and Means (1932) who were executed after the 1929 crisis. The problem of governance for these two authors was born from the division of the property function into two functions: an adjudicative one and a control one. This quarter, due to a failure of the control systems which are responsible for key management discipline, would have caused deterioration in the performance and counting of shareholders. The different results show that the impact of governance mechanisms on performance remains an empirical question to explore. The ambiguity, both theoretical and empirical, prompted us to clarify this association for the Tunisian case. In the third part, we test the existence of a relationship between bank governance and performance
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