Board Characteristics, Performance and Risk Taking Behaviour in Tunisian Banks

Rachdi, Houssem; Ameur, Ines Ghazouani Ben

doi:10.5539/ijbm.v6n6p88

Cited by 47 publications

(48 citation statements)

References 37 publications

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“…Besides, Chahine and Safieddine (2009) find that ROA and ROE first decrease and then increase with the percentage of outside directors on the Lebanon board. Rachdi and Ghazouani Ben Ameur (2011) conclude that the presence of independent directors within the board affects negatively the performance of Tunisian banks. Hence, we formulate the following hypothesis:…”

Section: Independent Directorsmentioning

confidence: 99%

“…However, Trabelsi (2010) find that the high number of the board's members has a very negative effect over performance of a sample of 10 Tunisian banks during the period 1997-2007. Based on a sample of 11 large Tunisian commercial banks during 1997-2006, Rachdi and Ghazouani Ben Ameur (2011 find that a small bank board is associated with more performance. Recently, Al-Amarneh (2014) study a sample of 13 listed banks in Jordan during 2000-2012 and find that as board size increases the bank performance increase.…”

Section: The Board Sizementioning

confidence: 99%

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Did Board of Directors Have an Impact on MENA Bank Performance?

Boussaada¹,

Karmani²

2015

IJEF

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This paper examines the impact of board of directors on the variability of bank performance in the Middle East and North Africa (MENA) region. Based on a sample of 38 banks during 2004-2011, we examine the impact of board characteristics on performance. Our results show that as the size of a bank's board of directors decreases its performance increases. However, the presence of CEO duality, independent and institutional directors in the board of directors is not significant in explaining performance differences between MENA banks. In addition, the results highlight the fact that state directors undermine the performance while foreign directors are relevant to strengthen the performance in MENA banks. Indeed, our findings highlight the importance of foreign members in enhancing banks performance.

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Section: Independent Directorsmentioning

confidence: 99%

Section: The Board Sizementioning

confidence: 99%

Did Board of Directors Have an Impact on MENA Bank Performance?

Boussaada¹,

Karmani²

2015

IJEF

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“…[39], examine 11 Tunisian banks for ten years to find a negative correlation between board size and insolvency risk, but it is insignificant with both credit and global risks. [40], find that large bank board is associated with less (1/Z-score). [40], tests the relation between bank board structure in the US and bank risk-taking over the period from 1997 to 2004.…”

Section: Board Size and Bank Risk-takingmentioning

confidence: 99%

The Relationship Between Board of Directors’ Characteristics and Bank Risk-Taking: Evidence from Egyptian Banking Sector

Abobakr¹

2017

JFA

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Abstract:There is argument that the main reason behind the corporate failure is the engagement of banks in excessive risk taking. However, the existence literature provides conflicting evidence in this concern. The main objectives of this study is to investigate the influence of board characteristics on bank risk taking, by using Pooled Ordinary Least Squares regression techniques to test a sample of 27 Egyptian banks covering the period from 2006 to 2011. Measures of bank risk employed are the insolvency risk, credit risk and liquidity risk. The explanatory variables of board characteristics are board size, nonexecutive directors, CEO duality, female presence and, board qualifications. The control variables are bank size, debt ratio, and crisis. The results show that Board size is positively significant with the three measures of risks. Non-executive directors are negatively significant correlated with both insolvency and liquidity risk. CEO's duality is found positively significant with credit risk. Board female is negatively significant with insolvency and liquidity risk, while it is positively significant with credit risk. Board qualifications have no effect on the three measures of risks. The findings support the idea that board of director's characteristics is a determinant factor for bank risk taking.

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“…A similar finding is reported in the developing countries in the studies Mohd (2011) and Khan and Javid (2011). Finally, the relationship between board composition and firm performance was found to be non-significant between board independent and firm performance in both the developed states (Hu et al, 2010;Siala et al, 2009;Wei, 2007& Yue et al, 2008 and in the developing countries Chowdhury 2010;Chugh et al, 2011;Haslindar & Fazilah 2011;Ibrahim et al, 2010;Prabowo & Simpson, 2011;Rachdi & Ameur, 2011). Based on the theoretical perspective www.ccsenet.org/ass Asian Social Science Vol.…”

Section: Board Composition and Firm Performancementioning

confidence: 99%

The Effect of Board of Directors Characteristics, Audit Committee Characteristics and Executive Committee Characteristics on Firm Performance in Oman: An Empirical Study

Al-Matar¹,

Al‐Swidi²,

Fadzil³

2014

ASS

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This study is an attempt to achieve the main objective by examining the association between the board of director's characteristics, audit committee characteristics and the executive committee characteristics and the performance of the Oman companies. This study used many assumptions to test the relationship between independent variables and dependent variable as discussed in the section explaining the study method. The data comprised of 162 non-financial companies because financial and non-financial companies employ different methods and they have different structures. As this study attempts to bridge the gap in the existing literature by investigating the association between corporate governance mechanisms and firm performance in the emerging market of Oman, it focuses on adding new important variables of corporate governance mechanisms like board change, the role of secretary on the board, the legal counsel and the executive committee characteristics that improve firm performance.The findings indicated a significantly positive relationship between board size, board meeting, audit committee independence and executive committee independence, and the Tobin`s Q. On the other hand, board independence and legal counsel are significantly and negatively related to Tobin`s Q. Moreover, a positive but insignificant relationship is found between CEO tenure, CEO compensation, audit committee size, and the firm performance (Tobin`s Q). Furthermore, board change, the role of the secretary on the board, audit committee meeting, executive committee size and executive committee meeting are revealed to have a negative but insignificant association with firm performance (Tobin`s Q). Finally, this study provides recommendations for future research.

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Board Characteristics, Performance and Risk Taking Behaviour in Tunisian Banks

Cited by 47 publications

References 37 publications

Did Board of Directors Have an Impact on MENA Bank Performance?

Did Board of Directors Have an Impact on MENA Bank Performance?

The Relationship Between Board of Directors’ Characteristics and Bank Risk-Taking: Evidence from Egyptian Banking Sector

The Effect of Board of Directors Characteristics, Audit Committee Characteristics and Executive Committee Characteristics on Firm Performance in Oman: An Empirical Study

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