Board Governance and Bank Performance: Case of Tunisian Banks

Articles in Press

Document Type : Research Paper

Authors

Laboratory in Economics and Management, Faculty of Economics Sciences and Management of Sfax, University of Sfax, Sfax 3018, Tunisia.

10.22059/ier.2024.377152.1008020

Abstract

This paper examines the influence of board characteristics on bank performance. We use a sample of 11 Tunisian commercial banks listed on the Tunis Stock Exchange (TSE) over the period of 2006-2020. We perform both the static and dynamic data models for the purpose of investigating the effect of a range of board characteristics on bank performance. Indeed, we use the random effects model and also the two-step generalized method of moments (GMM) estimator. This method was proposed in 1991 by Manuel Arellano and Stephen Bond. The results show that board size negatively affects bank profitability, while female board members have a positive impact. However, duality has no effect on bank performance. The results also show that bank size positively affects the profitability of Tunisian banks. Consequently, this paper contributes to the literature since it provides a better understanding of the role of board characteristics in determining the performance of the Tunisian banking sector over a long period.

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Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 02 October 2024

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