Publications

first_pagesettingsOrder Article Reprints Open AccessArticle The Impact of Board of Directors’ Characteristics on the Financial Performance of the Banking Sector in Gulf Cooperation Council (GCC) Countries: The Moderating Role of Bank Size by Zouhour Abiad 1,Rebecca Abraham 2,*ORCID,Hani El-Chaarani 3ORCID andRuaa Omar Binsaddig 4 1 Center for Research, Studies and Documentation (CRED), ESA Business School, Beirut 289, Lebanon 2 Huizenga College of Business, Nova Southeastern University, Fort Lauderdale, FL 33314, USA 3 School of Business Administration, Beirut Arab University Tripoli Campus, Beirut 11072809, Lebanon 4 Department of Finance, College of Business Administration, University of Business and Technology, Jeddah 23435, Saudi Arabia * Author to whom correspondence should be addressed. J. Risk Financial Manag. 2025, 18(1), 40; https://doi.org/10.3390/jrfm18010040 Submission received: 20 December 2024 / Revised: 13 January 2025 / Accepted: 15 January 2025 / Published: 17 January 2025 (This article belongs to the Section Banking and Finance) Downloadkeyboard_arrow_down Versions Notes Abstract This study investigates the impact of corporate governance characteristics on bank financial performance in Gulf Cooperation Council countries. The board characteristics include board size, board independence, board gender diversity, and CEO duality (CEO is also Board Chair), with bank size as the moderating variable. Sixty-six commercial banks from six Gulf Cooperation Council countries—Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar—are examined from 2019 to 2023 using two-stage least squares and generalized method of moments econometric methods. Board size, board independence, and board gender diversity significantly increase return on assets and return on equity. The impact of CEO duality is mixed. The empirical findings show that CEO duality increases return on equity, with a non-significant impact on return on assets. Finally, results show that bank size moderates the impacts of board size, board independence, and gender diversity in boards on the financial performance of banks. Large banks significantly increase return on assets and return on equity due to the board characteristics examined, to a greater extent than small banks. Bank leaders should expand board membership, and add independent directors and women, to improve financial performance.