Corporate Governance and Firms' Financial Performance: An Empirical Study in Lebanon
Corporate governance concept has been introduced in order to solve the issue of agency problem, to attain future development, increased competitiveness in the market place and enhance economic growth. Financial sector was chosen to study the relation between corporate governance and financial performance, as this sector plays an important role in business sector and ensures increased competitiveness, higher profitability and business development. Banks were in a closer distance than insurance firms in understanding the principles of governance, its importance and applying some of its criteria or equivalent ones such as codes of business ethics and internal codes of control. However, more insight is needed in that respect and especially for insurance companies, in order to reach the maximum attainable benefits from such applications. This can be done through seminars, trainings, orientation of published reports and placing higher importance of corporate governance by adopting international standards and having a code of business ethics distributed among employees. More detailed overview will be presented in the upcoming sections.
Suhad Jamil Saassoo
Prof. Nehale Mostapha & Dr. Ahmed Seleim