Table 3 Variable definitions and measurements
From: Testing the governance-performance relationship for the Tunisian banks: a GMM in system analysis
Variables | Definitions | Measurements | Sources |
|---|---|---|---|
Dependent Variable | |||
 NIM | Net Interest Margin | (Received Interest – Paid Interest) / Total Assets | Hakimi et al. (2017). |
Bank - specific | |||
 SIZE | Bank Size | Ln (TotalAssets) | Hakimi et al. (2017). |
 CDR | Credit Risk | Total Loans/ Total Assets | Hakimi and Zaghdoudi (2017), Zaghdoudi and Hakimi (2017), Hakimi et al. (2017). |
 LIQR | Liquidity Risk | TotalCredit /Total Deposit | Zaghdoudi and Hakimi et al. (2017). |
Corporate Governance | |||
 BS | Board Size | Number of directors on the board | Chenini and Jarboui (2016). |
 DUAL | Duality | Binary variable that takes 1 when the executive director is also chairman of the board and 0 otherwise. | Griffith et al. (2002), Adams and Ferreira (2007), Pathan (2009), Chenini and Jarboui (2016) |
 IND | Board Independence | Number of independent directors / total number of directors on the board. | Fernandes (2017). |
 STATE | Presence of directors representing the State on the board of directors | Number of directors representing the state / total number of directors on the board. | Chenini and Jarboui (2016). |
 EXT | Percentage of foreign directors. | Number of foreign directors / total number of directors on the board. | Chenini and Jarboui (2016). |
 INST | Percentage of institutional investors | Percentage of investors holding 5% or more of the capital. | Chenini and Jarboui (2016). |
 CRO | Risk Monitoring Committee | Takes 1: Existence of a risk management committee. 0: No existence of a risk management committee. | Aebi et al. (2012). |
 COMP | CEO Compensation | \( \ln \left( CEO\frac{Compensation}{Total} Assets\right) \) | |