Corporate governance as an internal control system and its impact on financial performance : empirical study : companies listed at Palestine exchange

Other Title(s)

حوكمة الشركات كنظام رقابة داخلي و تأثيرها على الأداء المالي : دراسة عملية : الشركات المدرجة في بورصة فلسطين

Dissertant

Abd al-Nabi, Ghaida Yusuf Fathi

Thesis advisor

Halas, Salim Abd Allah

Comitee Members

Madi, Hisham Kamil
al-Juaydi, Umar Id

University

Islamic University

Faculty

Faculty of Commerce

Department

Department of Accounting and Finance

University Country

Palestine (Gaza Strip)

Degree

Master

Degree Date

2016

English Abstract

This study investigates the effect of corporate governance as an internal control system on financial performance of some selected companies listed in the Palestine Exchange in 2015.The Study primarily employs the agency theory and the resource dependence theory to investigate the relationship between corporate governance as an internal control system and financial performance (boards of directors characteristics and audit committees characteristics).

The empirical part of the study is based on a sample of 29 firms out of 47 firms listed in the Palestine Exchange; data was gathered through their annual reports; and multiple regression and descriptive statistics are the main tools of analysis.

Findings reveal that there is a statistically significant correlation between audit committee financial expertise and return on assets.

Otherwise, there is no correlation between any independent variables and either return on assets or return on equity controlling for any permutations for firm size, leverage and big 4.

The researcher refers these results, though go along with other similar studies in some of its parts, to the reality that these firms are family owned, where such board of directors and audit committees are, to great extent, not really validated, and if exist, they won’t perform the required functions as per the related theories.

The study recommends the Capital Market Authority to promote high standards of the principles and ethics of transparency of corporate governance, enlightening their positive role on value maximization.

Also, it recommends the Capital Market Authority to issue a stricter enforcement of legislations of corporate governance, with special measurements on those evading them; and to periodically review related practices to ensure their continuous reflection of local and international developments.

The study encourages other researchers to conduct similar studies on other samples and sectors.

Main Subjects

Financial and Accounting Sciences

No. of Pages

104

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-733725