Management entrenchment and performance: Case of Tunisian firms

Abstract

Since entrenchment strategy has a real impact on performance, we examine in this paper the relationship between entrenchment and performance. This study is based on cross-section data of 21 quoted Tunisian companies (from both manufacturing and service sector) over the period 2000 to 2006. Our evidence contributes to understanding the role played by several entrenchment pathways, such as the ownership structure, the debt policy and the structure of the board of directors. In this paper, we aim to shed light on these governance's features by indicating by which channel entrenchment strategy is carried out in Tunisian companies.