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This paper aims to explore the extent to which the control quality impacts non performing loans (NPLs) of Tunisian listed banks by integrating the guidelines of Circular No. 2011-06 issued on 20 May 2011 by Tunisian Central Bank.

Regressions using panel data are applied on a sample of 11 listed banks during the period from 2010 to 2015.

The results show that the presence of foreign directors on the Tunisian bank board affects credit risk. These administrators, with knowledge, independence and technology transfer, exercise more control than institutional administrators or state representatives. The risk committee is more effective than the other committees (audit committee and credit committee) in reducing non-performing loans. The role played by this body is the most important.

Testing empirically the impact of control quality on NPL by integrating the guidelines of the Central Bank leads to a better evaluation of reforms’ application and effective measures to strengthen the banking governance practices.

By exploring the application of the Central Bank’s guidelines for strengthening post-revolutionary banking governance practices, it becomes easy to assess the extent of the Circular No. 2011-06 by accounting practitioners, auditors and authority bodies to give the necessary recommendations for further reforms.

This cross-country study aims to investigate from an interdisciplinary perspective the impacts of the accounting regulation's strength and cultural values of long-term orientation (LTO) and indulgence (ND) on board efficacy in developing countries.

Board Efficacy Index scores for 54 developing countries over the period 2007–2016 were employed to ascertain predictors of management's accountability to boards of directors and investors. Two types of explanatory variables – formal and informal – were employed in a pooled Ordinary Least Squares (OLS) analysis.

The research is the first to empirically show that more LTO and ND in a country have significant and positive effects on board efficacy. The findings also show that the strength of auditing and reporting standards (SARS) has a dominant impact on board efficacy, and the SARS' consideration is recommended in future cross-country research on board efficacy.

To restore investor confidence and increase the credibility toward firms, regulatory authorities in developing countries are called upon to integrate compliance with accounting and auditing regulations combined with cultural values in the implementation of good governance practices.

This study contributes to the board efficacy literature in two significant ways. First, the study constructs and empirically tests a conceptual model that integrates both informal factors, the six cultural dimensions of Hofstede et al. (2010), and formal factors, the strength of accounting regulations. Second, conducting a study on a sample not widely used in the literature, over a fairly long period of time, highlights the governance characteristics of this context and strengthens the internal and external validity of the study.