The Governance of Companies: A Theoretical Analysis “Evidence from the Tunisian Banking”

Abstract

This article presents a comprehensive theoretical analysis of corporate governance practices, with a focus on the Tunisian banking sector. Corporate governance is an essential aspect of modern business organizations, impacting their overall performance, sustainability, and transparency. By examining the unique case of the Tunisian banking industry, this study aims to shed light on the intricacies of governance structures in a developing economy? Ahmad et al. (2022). The theoretical framework draws from established models of corporate governance, encompassing agency theory, stakeholder theory, and resource dependence theory. The authors analyze the interplay between shareholders, management, and various stakeholders in shaping decision-making processes, corporate policies, and strategic planning. Employing both qualitative and quantitative research methods, the study delves into the regulatory framework and governance mechanisms adopted by Tunisian banks. By investigating factors such as board composition, executive compensation, and the role of institutional investors, the research provides a nuanced understanding of corporate governance dynamics in the Tunisian context. Furthermore, this article explores the challenges and opportunities posed by the Tunisian banking sector's unique socio-economic landscape. It examines how cultural, political, and institutional factors influence corporate governance practices and impact firms' financial performance and risk management, Chen et al. (2023). The findings of this research contribute to the existing body of knowledge on corporate governance, offering valuable insights for policymakers, regulators, and practitioners seeking to enhance governance practices within the Tunisian banking sector. Moreover, the study's implications extend to other emerging economies, providing a broader understanding of how governance structures can foster sustainable growth and mitigate financial risks in the banking industry. Overall, this theoretical analysis serves as a significant resource for academics, researchers, and professionals interested in the governance of companies, both within Tunisia and beyond, promoting informed discussions and potential improvements in corporate governance practices for the benefit of all stakeholders involved.