Board Characteristics and Firm Performance: Case of Saudi Arabia

Ghabayen, Mohammad Ahid

doi:10.5296/ijafr.v2i2.2145

Cited by 82 publications

(92 citation statements)

References 91 publications

(95 reference statements)

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“…On the contrary, the result found insignificant association between audit committee size and Tobin`s Q. Consequently, hypothesis H9 is not supported. The result of this study was similar with those of previous scholars like Abdurrouf (2011), Ghabayen (2012, Kajola (2008), Kim and Yoon (2007), Kyereboah-Coleman (2007), Mohd (2011), Mohd et al (2009), Nuryanah andIslam (2011) and Wei (2007).A probable reason for the insignificant finding of audit committee size and Tobin`s Q is that the firms concentrated on the AC effectiveness as opposed to their sizes as they do not deem AC size to be an important factor in improving the committee's effectiveness. For the effectiveness of AC, it should be made up of independent, expert and well-informed members and should wield sufficient authority (Mohiuddin & Karbhari, 2010).…”

Section: Regression Results Of Model (Based On Marketing Measure)supporting

confidence: 92%

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The Effect of Board of Directors Characteristics, Audit Committee Characteristics and Executive Committee Characteristics on Firm Performance in Oman: An Empirical Study

Al-Matar¹,

Al‐Swidi²,

Fadzil³

2014

ASS

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This study is an attempt to achieve the main objective by examining the association between the board of director's characteristics, audit committee characteristics and the executive committee characteristics and the performance of the Oman companies. This study used many assumptions to test the relationship between independent variables and dependent variable as discussed in the section explaining the study method. The data comprised of 162 non-financial companies because financial and non-financial companies employ different methods and they have different structures. As this study attempts to bridge the gap in the existing literature by investigating the association between corporate governance mechanisms and firm performance in the emerging market of Oman, it focuses on adding new important variables of corporate governance mechanisms like board change, the role of secretary on the board, the legal counsel and the executive committee characteristics that improve firm performance.The findings indicated a significantly positive relationship between board size, board meeting, audit committee independence and executive committee independence, and the Tobin`s Q. On the other hand, board independence and legal counsel are significantly and negatively related to Tobin`s Q. Moreover, a positive but insignificant relationship is found between CEO tenure, CEO compensation, audit committee size, and the firm performance (Tobin`s Q). Furthermore, board change, the role of the secretary on the board, audit committee meeting, executive committee size and executive committee meeting are revealed to have a negative but insignificant association with firm performance (Tobin`s Q). Finally, this study provides recommendations for future research.

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Section: Regression Results Of Model (Based On Marketing Measure)supporting

confidence: 92%

“…, , Dar et al (2011), Ghabayen (2012, Khan and Javid (2011), Kota and Tomar (2010), Kyereboah-Coleman (2007) and Mohd et al (2009). Based on the above arguments, the researcher proposes the following hypothesis;…”

Section: Audit Committee Independence and Firm Performancementioning

confidence: 99%

The Effect of Board of Directors Characteristics, Audit Committee Characteristics and Executive Committee Characteristics on Firm Performance in Oman: An Empirical Study

Al-Matar¹,

Al‐Swidi²,

Fadzil³

2014

ASS

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“…Thus, hypothesis H1 is not supported. This result is consistent with previous studies of Wei (2007) in China, Ghabayen (2012), Mohd (2011) and Nuryanah and Islam (2011) Dar et al (2011) andGhabayen (2012). One possible reason for insignificant result of audit committee independence is that it may be significant to appoint individuals with technical expertise and experience in order to guarantee value creation.…”

Section: Multiple Linear Regression Analysissupporting

confidence: 91%

Audit Committee Characteristics and Executive Committee Characteristics and Firm Performance in Oman: Empirical Study

Matari¹,

Al‐Swidi²,

Fadzil³

2014

ASS

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This study attempted to examine the association between two important committees of corporate governance practice namely, audit committee characteristics and executive committee characteristics, and firm performance. The data used comprised of non-financial companies listed in Muscat Security Market (MSM) through 2011 and 2012. Based on widely existing literature that studied the relationship between corporate governance and firm performance, studies that investigated the role of executive committee with firm performance are few and far between and hence, the main aim of this study is to discover this relation. Therefore, this study is an attempt to fill the gap in literature by exploring these new measures and contributing to a rich body of existing literature.The outcome of this study revealed a positive relationship between audit committee size (ACSIZE), audit committee independence (ACINDE) and executive committee size (ECSIZE) and firm performance but not significant. In addition, the association between audit committee meeting (ACMEETIN), executive committee independence (ECINDE) and executive committee meeting (ECMEETIN) and firm performance was negative but not significant. The findings found the relationship between firm size (FIRMSIZE) and firm performance to be positively significant while the relationship between leverage (LEVERAG) and firm performance was found to be negatively significant. Finally, this study discusses the results and provides limitation and recommendations towards the end.

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“…For example, Fallatah and Dickins (2012), Al-Matari et al (2012b), andGhabayen (2012) found no relation between governance mechanisms and firm performance such as board size, board independent, board meeting, audit committee size and audit independent. however, Al-Ghamdi and rhodes (2015) found positive and significant relation between the aforementioned mechanisms and firm performance especially in family firms.…”

Section: Resultsmentioning

confidence: 99%

Practice and effectiveness of internal corporate governance mechanisms in Saudi Arabia Stock Market: A review of empirical evidence

Marai¹,

Elghariani²,

Pavlović³

2017

Megatrend rev

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Board Characteristics and Firm Performance: Case of Saudi Arabia

Cited by 82 publications

References 91 publications

The Effect of Board of Directors Characteristics, Audit Committee Characteristics and Executive Committee Characteristics on Firm Performance in Oman: An Empirical Study

The Effect of Board of Directors Characteristics, Audit Committee Characteristics and Executive Committee Characteristics on Firm Performance in Oman: An Empirical Study

Audit Committee Characteristics and Executive Committee Characteristics and Firm Performance in Oman: Empirical Study

Practice and effectiveness of internal corporate governance mechanisms in Saudi Arabia Stock Market: A review of empirical evidence

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