Abstract
This study investigates the corporate governance (CG) mechanisms applied in the Lebanese banks with a focus on the board of directors (BOD). We collected board data for 67 banks between 2013 and 2015. The results document a lack of consistency in the disclosure of BOD practices where half of the banks do not abide by international standards with disclosed information being minimal. Moreover, banks applying the ISS standards at the BOD level did not prove any better financial performance. These findings are based on the fact that Lebanese banks have the right to lend the central bank while foreign banks do not, thus giving the local banks higher chances for profitable and less risky investments. The central bank also provides continuous support to the Lebanese banks through financial facilities to stimulate the economy in Lebanon.
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