The Effect of Corporate Governance on the Financial Performance of Palestinian commercial banks: An Empirical Study

Abstract

The study consists of two sections, the first one is the descriptive study which inspect to which extent corporate governance is applied in local Palestinian commercial banks, By adapting the (Credit Lyonnais Securities Asia-CLSA) model For the classification of banks according to three levels of corporate governance institutional ( low, medium, high) And the second section is applied study, which aimed to study the impact of corporate governance on the financial performance of local Palestinian commercial banks. included a sample study of seven local banks available her data crisis of the study The descriptive study’s results showed that There is a possibility to adapt the (Credit Lyonnais Securities Asia-CLSA) model for classification of local Palestinian commercial banks according to three levels of governance institutional, where noted there is a wide variation in the levels of governance between Banks sample, The applied study showed that has indicated to the impact of corporate governance on the three indicators of financial performance is the return on assets, and return on equity, and the profit per share, while the study didn’t find any effect of corporate governance in the price to earnings per share ratio; Based on these Results The study recommended that need to develop a (Credit Lyonnais Securities Asia-CLSA) model to measure corporate governance of the various institutions in Palestine, using what is stated in this study, to be a benchmark standard for the level of corporate governance,