Good Board Governance and Perceived Business Continuity in Tunisian Corporate Groups

This research deals with the contribution of good board practices to perceived business continuity in Tunisian corporate groups. This paper aims to identify the components of good board governance that can promote business continuity in Tunisian corporate groups through the study of the directors’ perceptions. Large Tunisian business groups form the pillars of the country economic development and reflect the ownership structure as well as the management style of Tunisian companies. In this regards, corporate governance and continuity issues are particularly important for Tunisian corporate groups. In this regards, Family-controlled businesses remain the predominant form of corporate groups in Tunisia. Good corporate governance can be a driver of business continuity by introducing good management practices allowing corporate groups to face succession problems and to improve company performance and its sustainability. The conceptual study has allowed us to identify the components of good board governance: Principles (Responsibility, Transparency, Fairness and Accountability), Board Roles (Control and Strategist), Directors skills and Board procedures. The survey was conducted on a sample composed of 50 Tunisian corporate groups using a questionnaire designed to be filled by the directors and the top management members. The regression analysis revealed the perceived business continuity is positively related to Board Strategic Role, Directors Skills, Board Procedures and Board Accountability. However, the results showed that Board Control Role and Board Fairness are negatively linked to perceived business continuity in sampled Tunisian corporate groups.