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Corporate Governance and Banking Stability in the MENA Region

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  • Jana BADRAN
  • Maria CHAMOUN

Abstract

This study investigates the determinants of banking stability through a comprehensive analysis of various financial and governance factors. Employing a panel regression approach, we examine the impact of key accounting variables, including capital adequacy ratio, return on assets, non-performing loans, bank size, and gross domestic product, as well as governance factors, covering board composition, audit quality, women on board, and the presence of risk committees, on the stability of banks operating in the MENA region between 2009 and 2020. Our findings reveal that most of these variables have a positive impact on banking stability. However, non-performing loans and the presence of independent directors on the board exhibit a negative relationship with banking stability. Therefore, it is found that banks under consideration maintain stability in tandem with good corporate governance practices and economic expansion, thereby positively influencing the MENA banking sector. The study recommends researchers to delve deeper into the complex relationships between these variables and banking stability and suggests that future studies explore additional factors that might impact the stability of banks in the MENA region.

Suggested Citation

  • Jana BADRAN & Maria CHAMOUN, 2024. "Corporate Governance and Banking Stability in the MENA Region," International Business Research, Canadian Center of Science and Education, vol. 17(2), pages 1-31, April.
    • Handle: RePEc:ibn:ibrjnl:v:17:y:2024:i:2:p:31
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    References listed on IDEAS

    as
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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