Corporate governance structure efficiency and bank performance in Saudi Arabia

The study of corporate governance structure in banking sector is an important component within the enhancement of banks' efficiency and performance. This current study investigated relationships between the efficiency of corporate governance structure and bank performance. The sample was comprised of nine listed banks in Saudi Stock Exchange. The sample indicated an overall support that blockholders play an important role in the enhancement of the efficiency of corporate governance structure of banks. The results reflected that there was a strong relationship between the efficiency of corporate governance structure and bank performance when using return on assets as a performance measure with one exception that government and local ownership groups were not significant. However, when using stock return as a performance measure, there was a weak positive relationship between the efficiency of corporate governance structure and bank performance.