Purpose

This study aims to analyze the effect of the board of directors on financial performance, either directly or indirectly, through the existence of risk management after the issuance of the Palestinian Code on Corporate Governance in Palestine.

Design/methodology/approach

This study uses a panel data of 31 Palestinian listed companies from 2010 to 2016. It also uses structural equation modeling (SEM) model.

Findings

The results of the SEM model show a significant positive relationship of the existence of risk management and the tenure-chief executive officer (CEO) with financial performance. However, CEO duality has a significant negative relationship with financial performance. The results also show a significant positive relationship of CEO duality and board size with financial performance through the existence of risk management.

Research limitations/implications

This study adds to the existing literature by analyzing the effect of the board of directors on financial performance, either directly or indirectly, through the existence of risk management in Palestine, one of the youngest stock exchanges in the region, which assists in testing the validity of agency theory in a young and small emerging Islamic market context.

Practical implications

The results of this paper are significant for shareholders and managers of companies to make proper choices to secure the interests of stakeholders and increase the flow of capital and foreign investment.

Originality/value

To the best of the author’s knowledge, it is one of the first papers to investigate the effect of the board of directors on financial performance, either directly or indirectly, through the existence of risk management in Palestine.

中文翻译：

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董事会对财务绩效的影响及风险管理作为干预变量的存在

目的

本研究旨在通过巴勒斯坦公司治理准则颁布后风险管理的存在，分析董事会对财务绩效的直接或间接影响。

设计/方法论/途径

本研究使用了2010年至2016年31家巴勒斯坦上市公司的面板数据。还使用了结构方程模型（SEM）模型。

发现

SEM 模型的结果表明，风险管理的存在和任期首席执行官 (CEO) 与财务绩效存在显着的正相关关系。然而，CEO双重性与财务绩效存在显着的负相关关系。结果还表明，通过风险管理的存在，首席执行官双重性和董事会规模与财务绩效之间存在显着的正相关关系。

研究局限性/影响

本研究通过巴勒斯坦（该地区最年轻的证券交易所之一）的风险管理直接或间接分析董事会对财务业绩的影响，对现有文献进行了补充，这有助于测试有效性年轻而小型的新兴伊斯兰市场背景下的代理理论。

实际影响

本文的研究结果对于公司股东和管理者做出适当的选择以保障利益相关者的利益并增加资本和外国投资的流动具有重要意义。

原创性/价值

据作者所知，这是第一篇通过巴勒斯坦风险管理的存在直接或间接调查董事会对财务绩效影响的论文之一。