Managers' Entrenchment, Governance and Bank Performance

Authors

  • Aymen Mselmi University Tunis el Manar Tunisia
  • Boutheina Regaieg University of Law, Economics and Management of 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 (TSE). 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.

Keywords: banking governance; managers' entrenchment; market performance;

JEL Classifications: G01, G20, G30

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Author Biographies

Aymen Mselmi, University Tunis el Manar Tunisia

PhD in financeProfessor of finance at the faculty of law, economic and management sciences of jendouba, tunisia.Teacher of several subjects such as financial management, business valuation, financial decision and financial diagnosis.Authors of several scientific articles in the field of banking governance.

Boutheina Regaieg, University of Law, Economics and Management of Jendouba, Tunisia

Associate Professor in Business ManagementProfessor of finance at the faculty of law, economic and management sciences of jendouba, tunisia.Teacher of several subjects such as financial management, business valuation, financial decision and financial diagnosis.Authors of several scientific articles in the field of banking governance.

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Published

2017-06-29

How to Cite

Mselmi, A., & Regaieg, B. (2017). Managers’ Entrenchment, Governance and Bank Performance. International Journal of Economics and Financial Issues, 7(3), 233–246. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/4228

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