OWNERSHIP STRUCTURE, CORPORATE GOVERNANCE AND BANK PERFORMANCE: EVIDENCE FROM GCC COUNTRIES

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Houda Arouri ORCID logo, Mohammed Hossain ORCID logo, Mohammad Badrul Muttakin ORCID logo

https://doi.org/10.22495/cocv8i4c3art5

Abstract

The paper examines the effect of ownership structure and board characteristics on bank performance of GCC counties. Evidence indicates that the extent of the foreign ownership level has a significant positive association with the bank performance. However, concentrated ownership does appear to have a significant negative impact on performance and institutional ownership does not have any significant effect on performance. Other governance variables such as CEO duality and board size appear insignificant impact on performance. These results suggest a need to strengthen the internal control mechanisms within banks of GCC countries.

Keywords: Ownership, Performance, GCC, Corporate Governance

How to cite this paper: Arouri, H., Hossain, M., & Muttakin, M. B. (2011). Ownership structure, corporate governance and bank performance: Evidence from GCC countries. Corporate Ownership & Control, 8(4-3), 365-372. https://doi.org/10.22495/cocv8i4c3art5