The Impact of Board Characteristics on the Performance of Banks in the MENA Region

Dhahri, Nourhen (2025): The Impact of Board Characteristics on the Performance of Banks in the MENA Region.

Abstract

This paper examines the impact of board characteristics on the variability of bank performance in the Middle East and North Africa (MENA) region. Based on a sample of 97 banks over the period 2016–2020, the study employed four corporate governance mechanisms to investigate their effect on two performance measures: ROA and ROE. In addition, three control variables were included to isolate the effect of corporate governance variables on bank performance. Using panel data regression, the results indicate that board size, CEO duality, and the presence of institutional directors on the board are the only corporate governance mechanisms that have a positive and significant effect on return on assets (ROA). Board size has a negative and significant effect on return on equity (ROE), while the presence of institutional directors on the board has a positive and significant impact on return on equity (ROE).

• Item Type: MPRA Paper
• Language: English
• Keywords: banks, board structure, performance, MENA
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance

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