Corporate governance and cultural diversity in Lebanese banks

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Abstract

This study’s scholarly significance lies in its exploration of the intricate connection between culture and corporate governance within Lebanon’s banking sector. Utilizing Hofstede’s established cultural dimensions model and employing a rigorous qualitative research methodology, the study investigates ten Lebanese banks, delving into specific cultural elements like “wasta”, social belonging, and quota. It uncovers the complexities of Lebanon’s cultural landscape, revealing that a uniform corporate governance model is unsuitable due to its cultural diversity. The research advocates extending Hofstede’s model to incorporate Lebanese-specific cultural dimensions, such as wasta and group affiliations, recognizing their pivotal roles. By addressing these cultural nuances, the study contributes to both academia and practical application within Lebanese banks, enhancing our understanding of corporate governance and cultural diversity in a concise manner.

Keywords: Culture, Corporate Governance, Hofstede, Banking Sector, Wasta

Authors’ individual contribution: Conceptualization — D.N.D.; Methodology — D.N.D.; Formal Analysis — D.N.D.; Data Curation — C.J.T.; Writing — Original Draft — D.N.D.; Writing — Review & Editing — C.J.T.; Visualization — K.N.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G34, G21, M14

Received: 17.07.2023
Accepted: 16.10.2023
Published online: 18.10.2023

How to cite this paper: Daw, D. N., Tawk, C. J., & Nair, K. (2023). Corporate governance and cultural diversity in Lebanese banks. Corporate Ownership & Control, 20(4), 32–43. https://doi.org/10.22495/cocv20i4art2