Rationale:This study aims to contribute to settling the lack of consensus regarding the determinants of bank performance,not only by considering bank governance,but also by including factors such as CEO compensation a...Rationale:This study aims to contribute to settling the lack of consensus regarding the determinants of bank performance,not only by considering bank governance,but also by including factors such as CEO compensation and risk management committee.Previous literature has included bank governance and considered only large banks in their surveys.The exclusion of other factors such as small-and medium-size banks may render the findings of these studies limited in applicability.Objective:The objective of this paper is to examine the impact of internal governance on bank performance.Methodology:To achieve this goal,we used annual data of a sample of ten Tunisian commercial banks listed in the Tunisian Stock Exchange observed during the period 1998–2015.We use the Generalized Method of Moments(GMM)to estimate the parameters of our econometric model.Results:Our study finds that the correlation between the size of the board of directors,the state’s inclusion,and the presence of independent directors is positive and significant.On the other hand,we have found that CEO compensation,as well as foreign and institutional investors negatively affect the performance of the banks.Conclusions and implications:Tunisian banks are invited to broaden their size through appropriate restructuring,adopt new remuneration policies and define the optimal number of directors representing the state within the board of directors.Our results suggest managerial implications that can be of great value to ensuring the success of Tunisian banks.The latter should favor a higher presence of independent directors to reduce the bank control ineffectiveness caused by having a significant number of foreign and institutional investors in the board of directors.展开更多
This study aims to determine the relationship between several factors of governance and the level of risk in 10 Tunisian banks during an analysis period of eight years.We propose an important empirical question and ex...This study aims to determine the relationship between several factors of governance and the level of risk in 10 Tunisian banks during an analysis period of eight years.We propose an important empirical question and examine the internal mechanisms of governance aimed at reducing financial risks.This estimation is based on a model with a single equation that examines variables relative to governance and credit risk to determine their impact on banking financials.Results demonstrate that the internal mechanisms of governance present diverging effects on the financial risk of the Tunisian banks in our case study(i.e.,credit risk).Moreover,making applications work by putting together a process and model for banking risk is important.This model can be applied in any bank,and the results can be used to make decisions in real time.展开更多
文摘Rationale:This study aims to contribute to settling the lack of consensus regarding the determinants of bank performance,not only by considering bank governance,but also by including factors such as CEO compensation and risk management committee.Previous literature has included bank governance and considered only large banks in their surveys.The exclusion of other factors such as small-and medium-size banks may render the findings of these studies limited in applicability.Objective:The objective of this paper is to examine the impact of internal governance on bank performance.Methodology:To achieve this goal,we used annual data of a sample of ten Tunisian commercial banks listed in the Tunisian Stock Exchange observed during the period 1998–2015.We use the Generalized Method of Moments(GMM)to estimate the parameters of our econometric model.Results:Our study finds that the correlation between the size of the board of directors,the state’s inclusion,and the presence of independent directors is positive and significant.On the other hand,we have found that CEO compensation,as well as foreign and institutional investors negatively affect the performance of the banks.Conclusions and implications:Tunisian banks are invited to broaden their size through appropriate restructuring,adopt new remuneration policies and define the optimal number of directors representing the state within the board of directors.Our results suggest managerial implications that can be of great value to ensuring the success of Tunisian banks.The latter should favor a higher presence of independent directors to reduce the bank control ineffectiveness caused by having a significant number of foreign and institutional investors in the board of directors.
文摘This study aims to determine the relationship between several factors of governance and the level of risk in 10 Tunisian banks during an analysis period of eight years.We propose an important empirical question and examine the internal mechanisms of governance aimed at reducing financial risks.This estimation is based on a model with a single equation that examines variables relative to governance and credit risk to determine their impact on banking financials.Results demonstrate that the internal mechanisms of governance present diverging effects on the financial risk of the Tunisian banks in our case study(i.e.,credit risk).Moreover,making applications work by putting together a process and model for banking risk is important.This model can be applied in any bank,and the results can be used to make decisions in real time.
