Intermediary Role of Financial Transparency in Relationship between Governance and Achieving Financial Stability in Arab Banks (Case study: Al-Rajhi Bank in the Kingdom of Saudi Arabia - Al-Ittihad and Al-Ahly Banks in the Kingdom of Jordan and Al-Balad B

Abstract

The research aims to identify the modified role of financial transparency in the relationship between the governance and the achievement of financial sustainability in Arab banks. This research in terms of data collection is a descriptive investigation. In terms of purposes, current research is applicable. The statistical population of the research includes all employees of Al-Rajhi Bank in the Kingdom of Saudi Arabia, Al-Ittihad and Al-Ahly Banks in the Kingdom of Jordan and Al-Balad Bank in Sudan that their number is 420 persons. The sample size was estimated using Cochran formulate as 200 persons and they were selected by random cluster sampling. For the assessment of corporate governance from Kavasi questionnaire, for financial transparency from Hisu questionnaire and for financial stability from research questionnaire making. The validity of this questionnaire was confirmed by the accounting professors and its reliability was calculated by Cronbach^’s alpha (0.89). And the collected data was analyzed by Lisrel software using structural equation method. The results of data analysis showed that corporate governance has a positive and significant effect on financial stability of Arab Banks. Also, the results of data analysis showed that corporate governance and financial transparency have a positive and significant effect on financial stability of Arab Banks.