Bankers on Board, Banks as Shareholders and Firms Performance: Case of the Tunisian Listed Companies
Affes H and Hakim NH*
Lecturer at the Faculty of Sciences, Faculty of Economics and Management of Sfax, University of Sfax, Tunisia
- *Corresponding Author:
- Hakim NH, PhD
Faculty of Economics and Management of Sfax
Lecturer at the Faculty of Sciences, University of Sfax, Tunisia
E-mail: [email protected]
Received: March 13, 2016 Accepted: March 21, 2016 Published: March 31, 2016
Citation: Affes H, Hakim NH (2016) Bankers on Board, Banks as Shareholders and Firm’s Performance: Case of the Tunisian Listed Companies. J Bus Fin Aff 5:180. doi:10.4172/2167-0234.1000180
Copyright: © 2016 Affes H, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Unlike the Anglo-Saxon countries, where business financing is made through the financial markets, Tunisian banks play a more important role than the financial markets in funding the firms. In addition to their function as lenders, they can participate in the capital of companies and/or serve on their boards. Our results on a sample of 14 listed companies on the Tunisian Stock Exchange (STE) during the 2003/2009 period show that banks play an important role in the governance of the Tunisian firms and affect their performance. Based on this sample, we performed regressions of these two governance variables (banking participation in the firms’ equity and boards) on the firms’ accounting and stock performance. The obtained results show that, firstly, the banking investment in the firms’ share capital has a negative impact on the accounting performance measured by the ROA and the ROE and positively on the stock market performance (Tobin's Q and Marris) and, secondly, the banking presence in the board of directors has both a positive and negative impact on the accounting performance on the stock market performance.