Title: Corporate governance, policy stability and systemic risk of financial institutions: a comparative analysis of the common law and civil law system

Authors: Aymen Mselmi

Addresses: Department of Finance, College of Business at Alkamil, University of Jeddah, Saudi Arabia

Abstract: This paper examines the relationship between the quality of corporate governance, political stability and systemic risk of financial institutions in both, common law and civil law of the two countries groups. Thus, it is the subject of a comparative study in terms of the relationship between the three elements: corporate governance, political stability and systematic risk of financial institutions. Our study focuses on a sample of 304 financial institutions around the world for a ten-year period from 2004 to 2013. First, we have reached the empirical evidence which indicates that financial institutions with a strong corporate governance structure are exposed to high levels of systemic risk. Second, we have confirmed that the corporate governance standards applied in financial institutions belonging to the common law system contribute to the amplification of the level of systemic risk incurred by its institutions.

Keywords: corporate governance; political stability; systemic risk; common law; civil law.

DOI: 10.1504/IJMED.2020.108711

International Journal of Management and Enterprise Development, 2020 Vol.19 No.3, pp.236 - 256

Received: 20 Dec 2019
Accepted: 19 Jan 2020

Published online: 17 Jul 2020 *

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