Corporate governance in Libya: a systematic review and comparative analysis with UK standards

Purpose

This study aims to evaluate current corporate governance (CG) practices in Libya, identify gaps in the literature and compare these practices with UK CG standards, with a special emphasis on enhancing the role of the board of directors and its committees within the Libyan banking sector.

Design/methodology/approach

Using a systematic literature review approach, this research comprehensively assesses existing CG literature in Libya to identify gaps and suggest avenues for future research. Additionally, this study conducts a comparative analysis of CG practices in two different jurisdictions: Libya and the UK. This approach facilitates a critical reassessment of the Libyan CG code and proposes strategic modifications to enhance board functionalities and governance practices in the country.

Findings

The review emphasizes the urgent need for in-depth CG research in Libya, noting the strong impact of UK academic models on Libyan governance studies. The comparative analysis points out serious weaknesses in the governance of Libya’s banking sector, highlighting the necessity for focused research and extensive reforms. It calls for notable improvements in board functions, addressing governmental interference and resolving legal deficiencies. Furthermore, the study urges the Central Bank of Libya to adopt and enforce stricter governance standards, which are crucial for improving governance quality.

Originality/value

This study distinctively uses a systematic literature review to identify gaps and set a research agenda in the CG of the banking sector in emerging economies, with a focus on Libya’s unique political, cultural, social and legal contexts. It also conducts a comparative analysis of CG practices between Libya and the UK, revealing the strengths and weaknesses of Libya’s framework. The research identifies critical areas for improvement, aiming to enhance governance practices and inform stakeholders – including government officials, regulators, shareholders and board members – about necessary reforms to strengthen the CG landscape.