Optimal Board Characteristics for Making Effective Decisions Affecting Financial Performance: An Examination Study

This This study aims to test the relationship between the characteristics of the board of directors (BOD) and financial performance (FP) in the financial sector listed on the Bahrain bourse. To achieve the objectives of the study, all companies in the financial sector listed on the Bahrain bourse were studied, and the study sample consisted of 20 companies. The annual financial reports of companies have been relied on to extract data that helps test the relationship between the characteristics of the BOD and FP. The results of the study showed that there is no relationship between the characteristics of the BOD and the return on equity (ROE), and in light of the findings of the study, the study recommended several recommendations, most notably: keeping the size of the BOD at the minimum stipulated by the Bahraini corporate governance, as this limit enables the BOD to properly perform its supervisory activities. And conducting many studies because they are important for the decisionmaking process of the BOD and shareholders. The BOD should improve the quality of its strategic decision-making by establishing frameworks designed to prioritize long-term profitability and sustainability. By aligning board-level strategic decisions with performance targets, businesses may construct insight-driven, comprehensive, and responsive strategies that promote constant financial well-being.