Title: Corporate governance in Lebanese banks: focus on board of directors

Authors: Abdul-Nasser El-Kassar; Walid El Gammal; Samir Trabelsi; Bilal Kchouri

Addresses: Lebanese American University, P.O. Box 13-5053, Chauran, Beirut 1102 2801, Lebanon ' Lebanese American University, P.O. Box 13-5053, Chauran, Beirut 1102 2801, Lebanon ' Brock University, 1812 Sir Isaac Brock Way, St. Catharines, ON L2S 3A1, Canada ' Lebanese American University, P.O. Box 13-5053, Chauran, Beirut 1102 2801, Lebanon

Abstract: This study investigates the corporate governance (CG) mechanisms applied in the Lebanese banks with a focus on the board of directors (BOD). We collected board data for 67 banks between 2013 and 2015. The results document a lack of consistency in the disclosure of BOD practices where half of the banks do not abide by international standards with disclosed information being minimal. Moreover, banks applying the ISS standards at the BOD level did not prove any better financial performance. These findings are based on the fact that Lebanese banks have the right to lend the central bank while foreign banks do not, thus giving the local banks higher chances for profitable and less risky investments. The central bank also provides continuous support to the Lebanese banks through financial facilities to stimulate the economy in Lebanon.

Keywords: corporate governance; board of directors; BOD; banks; Lebanon.

DOI: 10.1504/IJCG.2018.094514

International Journal of Corporate Governance, 2018 Vol.9 No.3, pp.260 - 299

Received: 21 Aug 2017
Accepted: 17 Mar 2018
Published online: 04 Sep 2018 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article