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Managers' Entrenchment, Governance and Bank Performance

Author

Listed:
  • Aymen Mselmi

    (Department of Finance, Faculty of Economics and Management Tunis-el Manar, B.P 248, El Manar II, 2092 Tunis, Tunisia,)

  • Boutheina Regaieg

    (Department of Finance, Faculty of Law, Economics and Management of Jendouba, Avenue U.M.A, 8189 Jendouba, Tunisia.)

Abstract

This paper examines the relationship between managers' entrenchment, governance and financial and stock market performance of Tunisian banking institutions listed on the Tunis Stock Exchange. We first propose to model the level of managers' theoretical entrenchment. Second, we examine a panel data to determine the relationship between the different internal banking governance mechanisms, including managers' entrenchment, on banking performance. To this end, our study examines a sample of 11 Tunisian banks over a period stretching from the first half of 2006 to the second half of 2013.The results indicate that good governance practice codes of banking institutions often represent poor performance. On the other hand, managers' theoretical entrenchment contributes to improving the financial performance of Tunisian banking institutions.

Suggested Citation

  • Aymen Mselmi & Boutheina Regaieg, 2017. "Managers' Entrenchment, Governance and Bank Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 7(3), pages 233-246.
    • Handle: RePEc:eco:journ1:2017-03-31
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    References listed on IDEAS

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    More about this item

    Keywords

    Banking Governance; Managers' Entrenchment; Market Performance;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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