Impact of the governance system efficiency on the performance of the regional transport companies in Tunisia

The aim of this paper is to analyze the relationship between the efficiency of governance structure and financial performance. An extensive literature focuses on the potential link between corporate governance and firm performance. Most studies are interested only in one aspect of governance, but fewer researches examine the potential link between overall corporate governance and firm performance. Based on a sample of 12 Tunisian Regional Transport Companies (RTC), over the period between 2000 and 2010, we tested the hypothesis according to which firms having the most efficient governance structures are the most efficient. We were able to show that the RTC governance structure is efficient at 71.69%. Hence, we could prove that there is an excessive governmental interference in the RTC through the negative relationship found between governance structure and performance