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L’impact du conseil d’administration sur la performance financière des entreprises Tunisiennes
[The impact of the Board of directors on the financial performance of Tunisian companies]

Author

Listed:
  • Bouaziz, Zied
  • Triki, Mohamed

Abstract

The Board of Directors plays a key role as a mechanism of internal corporate governance. Indeed, its effectiveness is dependent on the presence of several factors, the most important are related to characteristics that relate primarily to the independence of its members, board size, combining the functions of decision and control and the degree of independence of the audit committee and gender diversity of the board. To test the validity of our hypothesis, which states the existence of a deterministic characteristic of the board on financial performance measured by three different ratios, namely ROA, ROE and Tobin's Q, we have developed three linear regression models. Our empirical validation was conducted on a sample of 26 companies listed on the Tunisian stock exchange Tunis (Tunis Stock Exchange) over a period that spans four years (2007- 2010). The estimated models show satisfactory results showing the importance of the impact of board characteristics on financial performance of Tunisian companies.

Suggested Citation

  • Bouaziz, Zied & Triki, Mohamed, 2012. "L’impact du conseil d’administration sur la performance financière des entreprises Tunisiennes
    [The impact of the Board of directors on the financial performance of Tunisian companies]
    ," MPRA Paper 38672, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:38672
    as

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    File URL: https://mpra.ub.uni-muenchen.de/38672/1/MPRA_paper_38672.pdf
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    References listed on IDEAS

    as
    1. Geoffrey C. Kiel & Gavin J. Nicholson, 2003. "Board Composition and Corporate Performance: how the Australian experience informs contrasting theories of corporate governance," Corporate Governance: An International Review, Wiley Blackwell, vol. 11(3), pages 189-205, July.
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    12. Kang, Eugene & Ding, David K. & Charoenwong, Charlie, 2010. "Investor reaction to women directors," Journal of Business Research, Elsevier, vol. 63(8), pages 888-894, August.
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    More about this item

    Keywords

    Board of Directors - financial performance -board size-the accumulation of functions-diversity of the board;

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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