The impact of the internal mechanisms of governance on the financial performance

Abstract

This study aims to determine the impact of internal governance mechanisms on the financial performance of Tunisian commercial banks during the period 2010-2016, for a sample of seven commercial banks operating in Tunisia. While using: the three independent variables namely, board size, the number of independent board members and the ownership concentration, as well as the two dependent variables which are the return on assets '' ROA '' and the return on equity '' ROE ''. Using a panel data model approach. The study found that there is a negative impact of statistical significance between the size of the Board of Directors and the performance of banks, and a statistically significant positive effect between the number of independent board members and ROE.