مجلة إقتصاد المال والأعمال
Volume 7, Numéro 1, Pages 547-558
2022-03-31

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

Authors : Benaissa Rim .

Abstract

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

Keywords

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