المجلة الجزائرية للتنمية الإقتصادية
Volume 8, Numéro 1, Pages 417-434
2021-06-19

The Role Of External Governance Mechanisms In Improving The Financial Performance Of The Algerian Economic Institutions

Authors : Benaissa Rim . Boussouak Amel .

Abstract

This study aims at testing the relationship between the external governance mechanisms and the financial performance in the Algerian economic institutions. The study attempted to highlight the effect of the external governance mechanisms on the financial performance of the Algerian economic institutions through the following indicators: The return rate on assets, the rate of return on sales and the return rate on property rights. A simple and multiple regression analysis methods have been used to reveal the relationship between the variables of the study with the optimal model proposal. The study concluded that external governance mechanisms are applied by the Algerian economic institutions. Hence, the paper found that there is a significant statistical correlation between the external governance mechanisms and the rate of return on assets, and there is a significant statistical correlation between the external governance mechanisms and the rate of return on property rights. A significant statistical correlation between the external governance mechanisms and the rate of return on sales is demonstrated.

Keywords

Algeria ; corporate governance ; external governance mechanisms ; financial performance ; Economic institutions