Impact of corporate governance on Algeria’s banks’ decisions: exploratory study

Proceedings of The 13th International Conference on Modern Research in Management, Economics and Accounting

Year: 2021


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Impact of corporate governance on Algeria’s banks’ decisions: exploratory study

Raja Douis, Fateh Ahmia



The confusing thing about Algerian economic environment is that it has no clear rules or systems concerning corporate governance up to this date unfortunately. That is since the initiative of ministry of small and medium size companies and traditional industries, which made in 2009 a general corporate governance guide for Algerians companies called “good corporate charter for companies in Algeria”. The latter is no longer been applied since this ministry was dissolved. These facts make us seek to discover whether Algerian companies are voluntary applying of OECD corporate governance guide from banks’ point view as an important stakeholder in Algerian economy. In addition, whether this implementation can affect Algerian banks decisions. To get this study results a survey have been distributed on 70 decisions’ makers working for 8 banks located in south Algeria including managers, deputies, heads of departments and loan officers. The results conclude that Algerian banks believe that Algerian companies are voluntary applying OECD corporate governance guide, which significantly increase their trust. However, these banks do not consider corporate governance as a relevant information for their lending decisions due to many causes including the lack of analytic potentials, and absence of rules that encourage them to use it in their lending policy.

keywords: corporate governance, banks’ decisions, trust, relevance, guide.