The aim of this paper is to examine the impact of foreign ownership on the profitability of Tunisian financial institutions. Empirical evidence shows (i) that the foreign ownership has a positive and significant effect on firm profitability as measured by return on assets and return on equity. (ii) The presence of foreign directors in the board causes also an increase in return on assets. (iii) However, contrary to previous studies, state-owned firms seem to perform better than fully privatized companies.

The aim of this paper is to analyze the role of the board of directors and the management entrenchment in the explanation of diversification strategy of the Tunisian firms. In particular we focus on the characteristics of these two opposite directions bodies where the first controls the second in explaining the strategic choices of the firm. We find evidence for the negative effect of the board size and outside directors on the diversification strategy of the firm. The empirical result points also the negative effect of the CEO duality, which is inconsistent with the agency hypothesis.

The purpose of this paper is to examine the mean reversion hypothesis in the Tunisian stock market using two methods: We use a cointegration test technique between stock prices and fundamental value and we estimate the model of Chiang et al. (1995) developed to detect a potential mean reversion of stock prices to fundamental. Our results indicate that although stock prices diverge away from their fundamental value proxied by dividends or earnings, there is an error correction mechanism which adjusts stock prices to revert back to their fundamental value. Evidence also shows that mean reversion supports the predictability of stock returns by the dividend to price and the price to earnings ratios.