An Analysis of Perceptions of Western Corporate Governance Principles in Saudi Arabia

Robertson, Christopher J.; Al-AlSheikh, Sulaiman; Al-Kahtani, Ali

doi:10.1080/01900692.2012.655529

Cited by 8 publications

(12 citation statements)

References 25 publications

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“…Yet the extent to which incorporating local perceptions of strategy, economic system and cultural issues into a viable strategic framework can be extraordinarily country specific and many local institutions may choose to embrace deeply seeded and highly revered traditions. In Saudi Arabia an attempt to balance free market capitalism with the protection of highly valued cultural and religious traditions has led to a unique business environment (Robertson et al, 2012). The Saudi Arabian government has traditionally steered clear of micro-managing private sector activity yet with the Saudi Stock Market governmental authorities concluded that developing a reasonable governance structure would generate a healthier investment climate (Mellahi, 2007 Our support of all three hypotheses sets the stage for future research endeavours.…”

Section: Discussionmentioning

confidence: 99%

“…Cultural traits and categories such as social status, proclivity for entrepreneurial behaviour and overarching work values have been found to vary between Anglo-Saxon/Western societies and Middle Eastern and Asian societies (Begley & Tan, 2001;Robertson et al, 2012). Ralston et al (1997) found that a matrix of cultural values (measured by individualism vs. collectivism) and economic ideology (capitalism vs. communism) yields four institutional categories with differences among the four groups.…”

Section: Contrasting Saudi Arabia and The United Statesmentioning

confidence: 99%

“…The scope and magnitude of influence of each factor tends to vary from country to country and it is this variation that creates cultural, ethical and behavioural differences across the region. The variation in these factors also determines the extent to which each nation is more or less open to convergence, divergence, or crossvergence (Robertson, et al, 2012).…”

Section: Contrasting Saudi Arabia and The United Statesmentioning

confidence: 99%

“…The Saudi partner must have majority ownership and the requirement of any expatriate worker entering the country must have a local sponsor (Robertson, et al, 2012). Saudis tend to adhere to a strict Islamic code of conduct and any strategic moves that could potentially violate the code will likely be averted (Malek, Vacani, Rasquinha, & Davey, 1993).…”

Section: Contrasting Saudi Arabia and The United Statesmentioning

confidence: 99%

“…Not only is the Saudi business environment of special interest to the United States but it is also a salient topic to researchers due to its unique economic model and current investment in economic diversification by encouraging growth in industries beyond oil and gas. Although the Saudi business environment is unique in the Middle East it also lacks some essential components such as professional analysis community and financial databases (Al-Razeen & Karbhari, 2004;Robertson, Al-Alsheikh & Al-Kahtani, 2012). Moreover, the cultural complexity in Saudi Arabia stands out when interfaced with Western nations such as the United States and this made Saudi Arabia an appealing country choice for this study.…”

Section: Introductionmentioning

confidence: 99%

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Perceptions of international strategic moves: Saudi Arabia versus the United States

Robertson

Yaghmour

Kawther

2015

SAJBM

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Competitive strategy is one of the most important activities that top management team members can undertake. In the global marketplace perceptions of strategic moves and plausible foreign markets to enter can vary based on cultural differences, economic conditions and past experiences. In this study we match the Miles and Snow strategic orientations with possible entry into different foreign markets. An in-depth survey of strategic orientation perceptions is developed and, based on a two-country research design, we obtain responses from 89 individuals from The United States and Saudi Arabia. A review of literature related to strategic orientation and cultural differences is performed and results suggest differences in perceptions of strategic preference and rating of promising foreign markets between the two national cohort groups. Three salient hypotheses are tested and supported related to topics such as where individuals prefer to invest, cultural distance and economic systems. Our differentiating contributions are (a) methodological, we use survey data rather than archival firm data as well as vignettes, and (b) theoretical, we assess managerial perceptions of foreign entry choice as opposed to firm level decisions. Managerial and future research implications are also discussed.

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Section: Discussionmentioning

confidence: 99%

Section: Contrasting Saudi Arabia and The United Statesmentioning

confidence: 99%

Section: Contrasting Saudi Arabia and The United Statesmentioning

confidence: 99%

Section: Contrasting Saudi Arabia and The United Statesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Perceptions of international strategic moves: Saudi Arabia versus the United States

Robertson

Yaghmour

Kawther

2015

SAJBM

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Longitudinal approach to the study of corporate governance code and earnings management relationship: the case of Saudi Arabia

Grada

2022

JAEE

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PurposeThis paper investigates whether the introduction of the 2006 corporate governance code and subsequent amendments constrain corporate earnings management (EM) practices amongst listed companies in Saudi Arabia.Design/methodology/approachAccounting and corporate governance (CG) data were collected from annual financial reports of a sample of 108 listed companies from 2007 to 2019. Absolute value of discretionary accruals was regressed against tested CG determinants provided in the CG code. The authors also employed other econometric models to check potential endogeneities.FindingsThe overall results provide evidence that the 2006/2018 Saudi Arabia corporate governance code (SACGC) does not deter EM practices in public companies.Practical implicationsRegulators and other stakeholders should make a deliberate effort to improve the Saudi CG environment by focussing on governance aspects such as board and ownership structures to ensure the independence of the board to effectively perform its statutory roles, as EM practices persist in the system.Originality/valueThis paper extends the literature on the effectiveness of CG, by providing evidence that CG code does not effectively constrain EM activities in settings where CG structures may exist, but greater importance is attached to informal relationships and other considerations than formal CG mechanisms, as these features usually work against the potentials of the principles of good CG as in the case of Saudi Arabia.

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Performance and CEO duality in Indian public banks: a moderating role of board independence

Singh

Sharma

2023

JAEE

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PurposeThe study aims to estimate the impact of the vigilant board independence (BIND) dimension that potentially neutralises the unfair influence of chief executive officer duality (CEODU) on Indian public banks' performance.Design/methodology/approachThe study takes into account the fixed-effects model to investigate the potential moderating effect of BIND in the relationship between CEODU and Indian bank performance. The econometric model is also robust against heteroscedasticity, serial correlation and cross-section dependence issues to ensure that the model is free from such biases. The study also addresses the major issue of endogeneity via vector autoregression and performs the analysis by considering one period lag of the explanatory variables.FindingsThe findings demonstrate that CEODU does not always lead to a negative outcome on the performance until or unless the board is monitored by the effective presence of outside directors.Research limitations/implicationsThe regulatory bodies consider the results to strengthen board capital where CEODU can benefit a business entity if vigilance BIND is present at or above a threshold point.Originality/valueThe study evaluated an under-researched role of BIND as a moderator that undermines the negative influence of CEODU on the performance of Indian banks. The study also establishes that the CEO's contribution to performance increases when the number of outside directors is at or above a certain threshold.

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An Analysis of Perceptions of Western Corporate Governance Principles in Saudi Arabia

Cited by 8 publications

References 25 publications

Perceptions of international strategic moves: Saudi Arabia versus the United States

Perceptions of international strategic moves: Saudi Arabia versus the United States

Longitudinal approach to the study of corporate governance code and earnings management relationship: the case of Saudi Arabia

Performance and CEO duality in Indian public banks: a moderating role of board independence

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