Title: Shareholder vs. stakeholder governance index and performance: evidence from the Tunisian quoted banks

Authors: Wissem Bouaziz; Abdelfettah Bouri

Addresses: Department of Accounting and Finance, Faculty of Economics and Management of Sfax, Road of Sokra Km 3, Sfax 3052, Tunisia. ' Department of Accounting and Finance, Faculty of Economics and Management of Sfax, Road of Aerodrome Km 4, Sfax 3018, Tunisia

Abstract: In this study, we investigate the association between bank performance and governance index of the Tunisian quoted banks. On the one hand, we estimate two types of banking governance index, such as the shareholder governance index and the stakeholder governance index using the data envelopment analysis (DEA) method. Then, we elaborate a classification of the Tunisian banks according to their governance practices and we classify the governance indexes relating to the bank ownership structure. Our results show that the private banks present the best shareholder governance index, whereas the privatised banks hold the best stakeholder governance index. On the other hand, we explore the impact of the governance index on the bank performance. We find evidence that the shareholder governance index is positively related to the shareholder performance and that the stakeholder governance index positively influences the stakeholder performance.

Keywords: banking; Malmquist DEA; data envelopment analysis; shareholder governance index; stakeholder governance index; ownership structures; company boards; company directors; Tunisia; shareholders; stakeholders; quoted banks; bank performance; classifications; governance practices; private banks; privatised banks; privatisation; shareholder performance; stakeholder performance; business performance; performance management; efficiency management; service sector organisations.

DOI: 10.1504/IJBPM.2012.047306

International Journal of Business Performance Management, 2012 Vol.13 No.3/4, pp.473 - 488

Published online: 20 Aug 2014 *

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