Corporate governance in Lebanese banking sector

Abstract

The purpose of this study is to examine the characteristics of board of directors of the Lebanese commercial banks and indentifying possible relationships between these characteristics and size, financial performance, age and ranking variables, all in the context of corporate governance. The main concern was to come up with a valid and logical analysis concerning the board of director characteristics and its relation with financial performance, age, size and ranking variables in the Lebanese commercial banks. The sections in this report include an introduction to the research topic explaining its general as well as its specific importance and relevance. The second part is the literature which aims to fit the research into the context of existing scientific knowledge. The methodology chapter shows how the research process was conducted and the degree of its reliability. Then, a description of the methodology used is provided and includes presentation, manipulation and interpretation of data all three integrated together. The last chapter consists of conclusions which are the review of the significant findings as well as the review of the shortcomings. The analysis was based on information gathered from the websites of banks operating in Lebanon. The data was collected through a systematic process; starting by gathering information about each bank from its annual report for the year 2010 and through other reliable online websites that include relevant information about the variables being collected. The data collected was recorded on an excel sheet to be later on tested by statistical programs (excel and SPSS) based on the hypothesis in question. Later on, the results were analyzed to conclude with a valid relationship from which we could generalize.