The Impact of Board of Directors Characteristics and Ownership Structure on Improving Financial Per-formance Indicators in Libyan Commercial Banks "An Applied Study on Libyan Commercial Banks During the Period 2003-2018"

Abstract

This study investigates the impact of board characteristics and ownership structure on improving financial performance indicators in Libyan commercial banks. The research employs panel data spanning the period from 2003 to 2018, drawing on annual reports and financial statements of six selected commercial banks that constitute the study sample. To fulfill the study objectives, a descriptive-analytical methodology was adopted, involving quantitative content analysis of the compiled financial data. Moreover, a multiple linear regression model was applied to test the study hypotheses and examine the relationship between the independent variables—namely, board characteristics and ownership structure—and the dependent variable, represented by financial performance indicators.

The empirical findings indicate a statistically significant relationship between financial performance and three variables: board independence, foreign ownership, and private institutional ownership. In contrast, board size, frequency of board meetings, and public institutional ownership did not exhibit any statistically significant effect. Based on these findings, the study recommends that Libyan commercial banks adopt optimal corporate governance practices that can enhance and sustain financial performance over time.