Corporate governance and firms in financial distress: evidence from a Middle Eastern country
by Charbel Salloum; Nehme Azoury
International Journal of Business Governance and Ethics (IJBGE), Vol. 7, No. 1, 2012

Abstract: The objective of this paper is to determine the managerial governance characteristics related to financially distress companies. The failure of boards to accomplish their monitoring duties seemed to be one of the main reasons behind the actual financial distress and bankruptcy that swept companies across the planet. Through the analysis of a sample of 178 Lebanese non-listed and family owned firms, the results showed that the boards (that have a higher proportion of outside directors) are less inclined to face financial distress than the boards with a lower proportion. In addition, a different conclusion proves that the board's size and financial distress are directly linked. The paper highlights the extent to which financial distress is associated with corporate governance from a Euro Mediterranean country. It would be a source of education to Lebanese investors, who excessively go for short-term returns, and of help to regulatory authorities in the framework of making policies on corporate governance reformation.

Online publication date: Thu, 29-Mar-2012

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Governance and Ethics (IJBGE):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email