This research aimed to examine the impact of governance on the financial performance of companies listed on the Palestine and Amman stock exchanges, by measuring the governance with several indicators: the gender diversity of board members, the size of the board of directors, duality in the position of the CEO, independence and academic qualifications of board members. As for the financial performance It is measured using return on assets and return on equity. A sample of (52) industrial companies and (21) banks distributed between the two stock exchanges were studied in the period (2013-2019). The study concluded that there is an insignificant positive effect of gender diversity, a significant adverse effect of the size of the board of directors, the duality in position of the CEO’s job, the independence of the board of directors, and an important positive impact of the practical experience of board members on the return on assets. The gender of members in the board, the independence and members’ academic qualifications of the board of directors, the presence of an insignificant adverse effect of the size of the board of directors, and a significant adverse effect of the duality position of the CEO on the return on equity. Based on the results, the study recommends continuous review of the codes and directing companies to pay attention to corporate governance practices through laws and legislation to push companies towards commitment of corporate governance practices. Also the continuous review for board members and their experience, commitment and independence, it also recommended that stock exchanges shed light on corporate governance and its importance through holding seminars and workshops attended by managers and decision-makers in companies.

Keywords: Corporate Governance, Financial Performance, Amman Stock Exchange, Palestine Stock Exchange

العنوان

المجلة الأردنية في ادارة الأعمال

الناشر

الجامعة الأردنية

بلد الناشر

الأردن

نوع المنشور

مطبوع فقط

المجلد

19

السنة

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الصفحات

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