Corporate Governance and Corporate Performance: The Case of Jordanian Banking Sector
Volume 8, Issue 1 Rania Abdullah Al Muhaissen, Buthina Ziead Alobidyeen
Published online:28 June 2022
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The purpose of this paper examine the relationship between Corporate Governance and Corporate Performance in Jordanian Banking sector. For that the study used ROA and ROE to measure the performance of the Banks, and the Board Size to measure the governance. A Pooled cross sectional regression implemented on a data for 13 Jordanian Commercial Banks in the period (2012 2019). The main finding of the study is that the increase in the board size will negatively affect the Bank Performance. The size of the board of directors for banks should be appropriate for the scope and complexity of the organization’s operations, and the members should be chosen so as to ensure a diversity of experience without compromising independence, compatibility, integrity, or the members’ availability for meetings. The board should not be overly large and should be composed of knowledgeable individuals who are familiar with the role of supervision. A Chairman and a combination of executive and non-executive directors should make up the Board.
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