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Table 3 Variable definitions and measurements

From: Testing the governance-performance relationship for the Tunisian banks: a GMM in system analysis

VariablesDefinitionsMeasurementsSources
Dependent Variable
 NIMNet Interest Margin(Received Interest – Paid Interest) / Total AssetsHakimi et al. (2017).
Bank - specific
 SIZEBank SizeLn (TotalAssets)Hakimi et al. (2017).
 CDRCredit RiskTotal Loans/ Total AssetsHakimi and Zaghdoudi (2017), Zaghdoudi and Hakimi (2017), Hakimi et al. (2017).
 LIQRLiquidity RiskTotalCredit /Total DepositZaghdoudi and Hakimi et al. (2017).
Corporate Governance
 BSBoard SizeNumber of directors on the boardChenini and Jarboui (2016).
 DUALDualityBinary 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)
 INDBoard IndependenceNumber of independent directors / total number of directors on the board.Fernandes (2017).
 STATEPresence of directors representing the State on the board of directorsNumber of directors representing the state / total number of directors on the board.Chenini and Jarboui (2016).
 EXTPercentage of foreign directors.Number of foreign directors / total number of directors on the board.Chenini and Jarboui (2016).
 INSTPercentage of institutional investorsPercentage of investors holding 5% or more of the capital.Chenini and Jarboui (2016).
 CRORisk Monitoring CommitteeTakes
1: Existence of a risk management committee.
0: No existence of a risk management committee.
Aebi et al. (2012).
 COMPCEO Compensation\( \ln \left( CEO\frac{Compensation}{Total} Assets\right) \)Caspar (2016), Cerasi et al. (2017).
  1. Source: Table made by authors based on the literature review