EVIDENCE ON CORPORATE GOVERNANCE COMPLIANCE BY PALESTINE SECURITIES EXCHANGE LISTED FIRMS

Naser Abdelkarim and Khadija Ijbara

Global Journal of Business Research, 2010, vol. 4, issue 3, 73-88

Abstract: Good corporate governance is widely recognized as essential for the creation of a better and more attractive investment climate. The key objective of this descriptive research is to examine the extent of compliance of firms listed at Palestine Securities Exchange (PSE) with corporate governance best practices from managerial perspective. The study provides evidence that the PSE listed firms do not comply satisfactorily with corporate governance best practices specially when it comes to Board Composition and Independence. On the other hand, the non-compliance level in the area of transparency and disclosure was not as obvious. The study identifies a number of factors that may contribute to this non-compliance including the non-existent of enforceable code of corporate governance and the outdated Company Law that is still in effect in the Palestinian Territories, and finally the family dominance over corporate affairs . The value of this study stems from providing an evidence on compliance with good corporate governance by firms operating in under developed country with a small and simple but growing economy. The findings of this paper are considered relevant and helpful when evaluating the maturity of Palestinian economy, as well as the degree of PSE efficiency.

Keywords: Corporate Governance; CEO Duality; Boards' composition; Boards' effectiveness; Transparency and Disclosure. (search for similar items in EconPapers)
JEL-codes: G34 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (1)

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