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The Impact of Corporate Governance on the Performance of Lebanese Banks

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  • Hani El Chaarani

Abstract

This study examines the impact of corporate governance on financial performance of Lebanese banks during five years (from 2006 to 2010). Based on 182 observations, a quantitative method of data analysis was employed to investigate the relevance of corporate governance mechanisms. The first finding reveals a positive impact of independent boards on the performance of Lebanese banks. The research also finds a significant and negative relationship between CEO duality and bank performance. Finally, the paper reveals a positive impact of insider ownership concentration on the return of Lebanese banks indicating the more shares held by insiders, the better the performance. The weaknesses of corporate governance in some Lebanese banks might be compensated by higher insider ownership concentration.

Suggested Citation

  • Hani El Chaarani, 2014. "The Impact of Corporate Governance on the Performance of Lebanese Banks," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 8(5), pages 35-46.
    • Handle: RePEc:ibf:ijbfre:v:8:y:2014:i:5:p:35-46
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    6. Hadri Kusuma & Ariza Ayumardani, 2016. "The Corporate Governance Efficiency And Islamic Bank Performance : An Indonesian Evidence," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 13(1), pages 111-120, June.
    7. Hamid Mohsin Jadah & Logasvathi A/P Murugiah & Azira Binti Abdul Adzis, 2016. "The Effect of Board Characteristics on Iraqi Banks Performance," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(4), pages 205-214, October.
    8. Thilini Cooray & A. D. Nuwan Gunarathne & Samanthi Senaratne, 2020. "Does Corporate Governance Affect the Quality of Integrated Reporting?," Sustainability, MDPI, vol. 12(10), pages 1-30, May.

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    More about this item

    Keywords

    Lebanese Banks; Financial Performance; Financial Trust; Corporate Governance;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance

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