The Impact of Internal Governance Mechanisms on the Financial Performance of Moroccan Banks

Incidence des mécanismes de gouvernance interne sur la performance financière des banques marocaines

Btissame Raibouaa and Elarbi El Fakir
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Btissame Raibouaa: Université Ibn Zohr = Ibn Zohr University [Agadir]
Elarbi El Fakir: Université Ibn Zohr = Ibn Zohr University [Agadir]

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Abstract: This study analyzes the impact of internal governance practices specifically board of directors characteristics and ownership structure on the financial performance of Moroccan banks, as measured by return on assets (ROA). The empirical analysis is based on panel data for six banks covering the period 2012–2024. The methodology employed relies on ordinary least squares (OLS) regression, with robust standard errors clustered at the bank level, to ensure the validity of statistical inferences. The empirical results, derived from a hypothetical-deductive approach, indicate that several internal governance mechanisms do not have a significant impact on return on assets. However, the dual role of the CEO shows a positive and statistically significant correlation with return on assets (ROA), while majority ownership has a negative and statistically significant impact on the return on assets (ROA) of listed Moroccan banks. The study also highlights that control variables, particularly the bank's age and level of capitalization, have a positive and statistically significant influence on financial performance, suggesting that older and better-capitalized banks perform better. These findings underscore the importance of enhancing the actual effectiveness of governance practices and pave the way for future research incorporating other mechanisms and contextual variables.

Keywords: Ownership Structure; Gouvernance interne Structure de propriété Conseil d'administration ROA Banques OLS. JEL Classification : C23 G21 G32 O16 Type du papier : Recherche empirique Internal governance Ownership Structure Board of directors ROA Banks OLS. Classification JEL : C23 G21 G32 O16; O16; OLS. Classification JEL : C23; Banks; Board of directors; Gouvernance interne; O16 Type du papier : Recherche empirique Internal governance; G32; G21; OLS. JEL Classification : C23; Banques; ROA; Conseil d'administration; Structure de propriété (search for similar items in EconPapers)
Date: 2026
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Published in International Journal of Accounting, Finance, Auditing, Management and Economics, 2026, ⟨10.5281/zenodo.19837010⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05721500

DOI: 10.5281/zenodo.19837010

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