The impact of internal corporate governance mechanisms on banking risks at Jordanian commercial banks listed on the Amman stock exchange

The aim of this research is to investigate the relationship between internal corporate governance mechanisms and banking risks during the period 2009-2016. The internal corporate governance mechanisms were measured by (Board size, Board Independence, CEO /Chairman Separation, Audit Committee Independence, Ownership concentration, Institutional Ownership, and Foreign Ownership). On the other hand, banking risk was measured using (credit risk, liquidity risk, Capital Adequacy, and operational risk). furthermore, bank size and debt ratios were used as a control variable. Based on the results of the study. The study population consists of Jordanian commercial banks, the study used a comprehensive sample of thirteen (13) Jordanian commercial banks listed on the Amman Stock Exchange during the period 2009-2016. The data are extracted from the annual reports for thirteen banks, Panel data was utilized and the data gathered from 104 annual reports from13 commercial banks in Amman, which descriptive analysis in addition to Pooled data regression was conducted using E-views to achieve the purposes of the research and hypothesis examination. The results of the tests showed that applying t Internal corporate governance mechanisms variables have a significmant effect on banking risks. The results of the tests showed that applying corporate governance rules exerts a significant impact on banking risk. the results also showed that the independence of the board of directors, the size of the Board members, the CEO/chairman separation, the Audit Committee 's independence, and Institutional Ownership exert a positive significant impact on the credit risk and that the Ownership concentration 's independence and Foreign Ownership 's independence exert a negative significant impact on the credit risk, and that the independence of the board of directors, Institutional Ownership and Foreign Ownership exert a negative significant impact on the liquidity risk, and that the size of the Board members and the CEO/chairman separation of duties, the Audit Committee Independence and Ownership concentration 's independence exert a positive significant impact on the liquidity risk, and that that Board of Directors, the size of the Board members and Audit Committee Independence and Institutional Ownership 's independence exert a negative significant impact on the capital adequacy risk, and that the CEO/chairman separation, Ownership concentration s independence, and Foreign Ownership exert a positive significant impact on the capital adequacy, the results also clarified that independence of the CEO/chairman separation of duties, the size of the board members, Ownership concentration s independence and institutional Ownership 's independence concentration exerts a positive significant impact on the operational risk and that the board of directors' independence, Audit Committee Independence and Foreign Ownership exert a negative significant impact on the operational risks.