The impact of board of director characteristics on bank financial performance: The case of Tunisian banks

Abstract

The purpose of this research is to investigate the impact of board director characteristics on banking financial performance in Tunisia from 2005 to 2015.

We used four independent variables related to the board of directors (board size, independence, duality, and the percentage of directors representing the state), as well as a macroeconomic variable (inflation), and a control variable (the size of the bank).

We used two dependent variables to assess financial performance: return on assets (ROA) and return on equity (ROE).

The main empirical findings show that board size and inflation variables have a negative impact on banking performance. The variables percentage of directors representing the state and bank size, on the other hand, have a positive impact on banking performance.