This analysis explores how corporate governance factors influence corruption in the MENA region, suggesting effective governance can reduce corruption.
This study examines the impact of a comprehensive set of corporate governance mechanisms on corruption in 173 listed companies in the Middle East and North Africa (MENA) region (2008–2024). Despite growing global attention to governance, empirical evidence from MENA remains limited, even as corruption continues to undermine transparency and sustainable growth. Using generalized least squares (GLS) and generalized method of moments (GMM) estimations, we find that board size, independence, meeting frequency, foreign directors, chief executive officer (CEO) duality, and audit committee characteristics significantly reduce corruption, whereas board gender diversity and auditor quality are positively associated with it. These findings differ from those in other regions, reflecting MENA’s unique institutional and cultural context. A key contribution of this study is the combined use of multiple governance mechanisms and the development of a novel, region-specific proxy for corporate corruption, with robustness checks confirming that effective governance is critical for enhancing corporate control over corruption.
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Ghlissi et al. (2025) studied this question.
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