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Corporate governance mechanisms Bank performance Saudi banking sector ROA ROE Board independence Ownership of the largest Shareholder Foreign ownership Audit committee size.This study investigates the effect of Corporate Governance Mechanisms on bank performance, using a sample of nine Saudi banks during the period 2011-2016. The study employed six corporate governance mechanisms to examine their effect on two performance measures; ROA and ROE. In addition, the study used three control variables to separate the effect of the corporate governance variables on bank performance. Using panel data regression, the results indicated that board independence and the ownership of the largest three shareholders were the only corporate governance mechanisms that have a negative and significant effect on ROA. Board independence and the ownership of the largest three shareholders had a negative and significant effect or ROE, while the ownership of the largest shareholder and the size of audit committee had a positive and significant impact on ROE.Contribution/ Originality: This study is one of very few studies which have investigated the effect of corporate governance on the performance of Saudi banks. Most previous studies have been done before issuing the last principles of corporate governance in 2014. INTRODUCTIONCorporate governance has attracted a great deal of debate among researchers during the last three decades.Corporate governance can be defined as the system, structure, and processes through which businesses are directed and controlled (Lee, 2008). Many previous researchers (such as Brick et al. (2005); Kajola (2008); Jackling and Johl (2009); Black and Kim (2012); Zaman R. (2015); Taguchi and Wanasilp (2018)) found that a good corporate governance enhances profitability and increases firm's performance.According to Todorovic (2013) good corporate governance can prevent corporate scandals and fraud, reduce its civil and criminal liability, enhance its image and reputation and increase the confidence of stakeholders. Moreover, Narwal and Jindal (2015) indicated that for developing economies, good corporate governance is an essential tool for globalization of business organizations.

Purpose – The purpose of this paper is to develop and test a conceptual model of bank performance. Design/methodology/approach – The papers build a system of causal relationships between market structure, strategic choice and bank performance using the path analysis method. The sample includes commercial banks from 11 emerging countries. Findings – Results show that market structure has a positive and indirect effect on bank performance, and that market share has a positive and direct effect on bank performance. Strategic variables related to risk taking and diversification affect directly and indirectly bank performance. The indirect effect occurs via market share. The results suggest that the mediating role played by the strategic choice in the relationship between market structure and performance is complete. Originality/value – The contribution of this paper is threefold. The first one is to develop a conceptual model to explain bank performance. The model includes simultaneously direct and indirect causal relationships between market structure, strategic choice and bank performance. The second one is the use of the path analysis method to estimate the direct and indirect relationships. The third one is related to the sample including commercial banks in emerging markets.

Purpose The purpose of this paper is to investigate empirically the channels through which Islamic and/or conventional banking can spur economic growth in MENA region. Design/methodology/approach The study uses a range of developed econometric approaches, including panel cointegration technique, panel Granger causality test and a panel-based vector error correction model (VECM), to analyze explicitly all the causal relationships among Islamic banking, conventional banking development and economic growth in a unified framework. Findings The empirical results show that Islamic banking in MENA countries not only leads to economic growth but also affects positively and significantly conventional banking development. Thus, Islamic banking has an active role and could be classified as “supply-following” since its development only leads to economic growth, whereas conventional banking, with passive role, could be classified as “demand-following” since it only reacts to economic growth in long run. Research limitations/implications The study has two principal limitations. It is conducted within a relatively limited time period and sample of countries. Also, the used models did not take into account the impact of others financial and macroeconomic variables like stock market development, interest rate, inflation and financial crisis. Practical implications The results have two main implications. First, in MENA countries, well-functioning Islamic banking sector could not only promote economic growth but also can be served as a development factor for their conventional one. Second, unlike conventional banks, the customer of Islamic banks seems not to be motivated by interest and profits. Rather religious factors are recommended as the main motive for investing and saving in Islamic banks. Originality/value The study tries to perceive whether there exists a substitution or complementarity effect between Islamic and conventional banking in promoting economic growth for MENA countries. This situation is neither revealed nor clarified in the relevant literature.

Cet article vise à étudier l’effet de la structure de marché et du choix stratégique sur la performance bancaire. La revue de la littérature montre que la structure de marché a un effet positif mais faible sur la performance bancaire. Le choix stratégique des dirigeants pourrait être introduit afin d’expliquer la performance bancaire. Les données on été collectées auprès d’un échantillon de 293 banques commerciales, appartenant à 11 pays émergents, disposant de données sur 7 années successives. Les résultats dégagés permettent de mettre en évidence le rôle du choix stratégique dans l’explication de la performance bancaire. Aussi, les résultats montrent l’absence de relation entre la concentration de marché et la performance bancaire et mettent en évidence l’importance de la part de marché dans l’explication de la performance bancaire.This paper aims to study the effect of market structure and strategic choice on bank performance. The literature review shows that the market structure has a positive but low effect on bank performance. The strategic choice of leaders could be introduced to explain bank performance. The data have been collected from a sample of 293 commercial banks, from 11 emerging countries, with data on 7 successive years. Results highlight the role of strategic choice in the explanation of bank performance. Also, the results show no relationship between market concentration and bank performance and highlight the importance of market share in the explanation of bank performance.Este trabajo tiene como objetivo estudiar el efecto de la estructura del mercado y la elección estratégica sobre el desempeño del banco. La revisión de la literatura muestra que la estructura del mercado tiene un efecto positivo, pero baja en el rendimiento del banco. La elección estratégica de los líderes se podría introducir para explicar el desempeño del banco. Los datos han sido recogidos de una muestra de 293 bancos comerciales, procedentes de 11 países emergentes, con los datos de 7 años sucesivos. Las pérdidas y ganancias cabe destacar el papel de la elección estratégica en la explicación de los resultados de los bancos. Asimismo, los resultados no muestran ninguna relación entre la concentración del mercado y desempeño de los bancos y ponen de relieve la importancia de la cuota de mercado en la explicación del desempeño de los bancos