Corporate board, ownership structure and banking performance in the emergent market

Abstract

Corporate governance plays a crucial role in creating corporate culture, transparency, enhancing economic and financial performance. In this context, this paper provides a brief view of the background of internal corporate governance mechanisms in Tunisia. Furthermore, it analyses the impact of the corporate board and ownership structure on the financial performance of Tunisian banking. The study uses a sample that consists of 11 listed banks for the period 2005-2018. Results revealed the importance of board control within the bank, but they also state that other mechanisms such as the ownership structure must also be taken into account. Research shows that the ownership concentration, board size, independent and institutional administrators affect bank performance. Likewise, duality is positively associated with bank profitability. The current study is considered as a battery for further research and studies particularly in Tunisia in the context of corporate governance and financial performance. The results can have an important implication on bank regulation and corporate governance in the Tunisian market.