This paper applies two of the famous asset pricing models in finance (Capital Assent Pricing model and Fama and French 1993 three factor model) in an emerging market with an Islamic Culture: Saudi Arabia Market (Tadwal), Generalized Methods of Moments and t Test statistical techniques were used to find the coefficients and to compare between real and expected returns.The results show that Fama and French 1993 model has more explanatory power and do a better job in explaining the changes in stock returns than the CAPM, and those developed market models can be applicable in emerging markets like Saudi Arabia. CAPM model has a clear evidence for its applicability while Fama and French Model has a clear evidence for the market return but not a clear evidence for the size and book to market return. Finally the results show that we can predict the stock prices by using any of those two models which means that the Saudi Arabia Market is inefficient pricing Market.The modernity and low number of companies has a big effect on the results, in addition the strong purchasing power and strong cash availability.Finally we recommend to appply more modern pricing models at the micro and macro level and add variables consistent with the Islamic Culture of Saudi Arabia.

This study investigates the role of corporate governance regulations on the financial performance within listed companies in Saudi Arabia. 120 organisations were selected from Saudi Stock Exchange, Tadawul, over a period of four years between 2016 to 2019 for 565 observations. The data were gathered about the intendent variable of board independence, board size, board meeting, board interlocking, in addition to firm size and leverage as moderators. The independent variable was Tobin’s q. The result of this study shows that there is a negative relationship between board size and board interlocking on one hand and financial performance of the listed companies on the other hand. Other independent variables of independent directorships and frequency of board meeting were shown to have a positive effect on financial performance. The outcome of this study supports the theoretical foundations of stakeholder theory about the importance of reducing the monopoly of the agents (directors on board) over the decisions of the company. Such reduction of the effect of directors can be done through maximising the number of meetings accompanied by maximising the number of independent directors on board. Also, by reducing board interlocking, the influence of directors will shrink while increasing board size will slow down the process of taking decisions which affect companies’ performance.

The goal of this research was to explore Financial Development and Economic Growth in Saudi Arabia. This would provide evidence pertaining to the relationship between financial sector development and economic growth within the country’s context. In regard to methodology, this study purposed an Autoregressive Distributed Lag (ARDL) model and an ECM model to underline the short and long-term dynamics. To measure financial development, this study implemented the value of credits provided by the financial sector to the private sector divided by GDP. Furthermore, based on a comprehensive and holistic reading of the literature, this study also implemented the control variables of trade openness, gross fixed capital formation, and the labor force. The findings show that there are long- and short-term relationships between financial development and economic growth. The regression coefficients for the ARDL model and Unrestricted Error Correction Model (ECM) were found to be statistically significant at the 10% level. All control variables were found to influence the relationship between the independent and dependent variables.

oreign direct investment is currently one of the main pillars in achieving development and economic growth, due to its important position in the economies of the countries of the world. The aim of this research is to study the impact of Fiscal and monetary policy in Saudi Arabia on attracting foreign investment for the period 2010–2018. The researcher used the multiple linear regression to test the research hypothesis. Linear regression is used to investigate the impact values by each predictor variable. The study covered the period 2010–2018, the present study chose independent variables monetary policy tools in Saudi Arabia that include (Money supply (M2), Monetary cash reserve and Exchange rate), also the present study chose fiscal tools that include (taxation and government capital spending). The Dependent Variables includes (Direct Domestic Investment and Foreign Direct Investment). E-views (version 10) software package was utilized for this purpose. Multiple linear regression was performed to test models. The results show that Money supply, Monetary cash reserve, capital government spending and taxation positively affects the domestic investments, while Exchange rate negatively affects the domestic investments. It was also found that all independent variables positively affect the foreign direct investment.