Corporate Governance, Performance and Efficiency: Case of the Tunisian Listed Firms

Abstract

The purpose of this article is to develop a synthetic index to evaluate the firms' practices with regard to corporate governance and this based on the stochastic frontier methodology, and stalled on the level of performance achieved by Tunisian Listed firms.

The sample used makes it possible to determine the effect of the corporate governance characteristics on performance as well as the effect of the firm-specific features on the level of efficiency. The profile study of calculated efficiency indices shows that Tunisian firms in general and, especially, those belonging to the financial sector (represented mainly by banks) suffer from a problem of governance.