Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/275065 
Year of Publication: 
2022
Citation: 
[Journal:] Journal of Risk and Financial Management [ISSN:] 1911-8074 [Volume:] 15 [Issue:] 12 [Article No.:] 588 [Year:] 2022 [Pages:] 1-22
Publisher: 
MDPI, Basel
Abstract: 
In this study, we explored the association of bank-level governance and state-level governance with the likelihood of banks' financial distress in developing economies. Using a panel data sample of 954 bank-year observations of 106 conventional banks across 14 Middle Eastern and North African (MENA) countries from 2010 to 2018, we found that bank governance arrangements seemed to be negatively attributed to the probability of financial distress. We also found that the relationship of political stability with financial distress prospects is-contrary to our expectation-insignificant, whereas government effectiveness negatively influences the likelihood of financial distress. Our empirical evidence offers practical implications for bank managers, regulators, and credit rating agencies, and suggests several future research avenues that can build on our findings.
Subjects: 
corporate governance
banking institutions
country-level governance
financial distress likelihood
Middle East and North Africa
JEL: 
G01
G30
G41
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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