The SMEs Governance Mechanisms Practices and Financial Performance: Case of Tunisian Industrial SMEs

Abstract

Nowadays, the issue of corporate governance occupies central paramount position among the preoccupations of the firms' decision-makers. Noteworthy, the relationship between governance and company performance is often stressed within the context of large companies and very few are those studies dealing with this subject as regard the small and medium enterprises (SME). In fact, most of the studies dealing with the governance question have predominantly out looked this issue with respect to the SME essentially in the context of the emergent countries. In this setting of analysis, the present research magic objective consists in highlighting the interaction dominating the governance relating mechanisms, namely, the directors' characters, the ownership structure and the directors' board regarding the SME performance. Actually, an examination of the tests conducted on a sample constituting of 50 Tunisian SMEs has shown that both the ownership structure and the board of directors play a paramountly role in improving the SME performance. The results have also indicated that the directors' do not greatly affect the performance owing to several careers related to the outside external environment of the SME.