The Impact of Corporate Governance on Firms' Performance in Palestine Exchange رسالة ماجستير

Abstract

The collapse of several large corporations has attracted the researches to investigate the reasons behind it. A limited number of studies were made to understand the impact of corporate governance and firms' performance in the Middle East, especially, Palestine. This study aimed to explore the impact of corporate governance on firms' performance of the listed firms in Palestine Exchange. A sample of 30 firms (in the industry, investment and services sectors) listed in Palestine Exchange were analyzed from the years 2017 to 2019. This study applies the agency theory to explore the impact of corporate governance on firms' performance. The agency theory relies on the agency conflicts between shareholders and managers. The results revealed that board size, board meetings, board ownership, CEO duality and independent directors had no significant impact on firms' performance, whereas, the audit committee was revealed to have an effect on firms' performance. Furthermore, the study has also revealed that corporate governance has no impact on industry, investment and services sectors individually. vii This study recommended to make amendments to the Corporate Governance policies taking place in PEX and to raise awareness to investors for more future investments.