Corporate Governance and Business Performance. Theories and Evidence about Corporate Governance

AlBaker

2023

CBSR

This study looks at the banking sector in the Gulf Cooperation Council (GCC) from 2013 to 2021 to determine the impact that corporate governance had on financial innovation, as well as the impact that financial innovation had on performance. Thirty (30) commercial banks with 270 annual observations were selected, including 5 banks from each country. In order to quantify the factors at play, we queried databases such as Refinitiv Eikon and Fitch Connect. The research indicates that banks with a greater number of directors with backgrounds in finance or accounting, a higher attendance rate of directors, a higher ratio of independent directors, a higher average director education level, and a greater number of directors with a background in finance or accounting, provide more cutting-edge financial services. Since 2017, corporate governance has been a more significant factor in how banks approach providing new, cutting-edge financial services to their customers. Furthermore, a bank’s profitability and value will rise in direct proportion to the extent to which it provides cutting-edge financial services. Furthermore, the value of financial holding subsidiary banks could rise if they provided more innovative financial services. However, the same action taken by non-financial holding banks could have a negative impact on their profitability.

Corporate governance and effect in fintech: Evidence from Gulf Cooperation Council banking sector

AlBaker

2023

CBSR

The impact of corporate social responsibility on consumer’s relationship intention: Evidence from MENA countries

Abu-Asi

Dominic

et al. 2021

JGR

Corporate social responsibility (CSR) raised the attention of the MENA market, given its capacity to influence consumers’ purchase intention and, particularly, consumers’ repurchase intention. Therefore, CSR helps to build a long-term relationship between the companies with its consumers. Following this new trend, our work contributes to the understanding of how CSR contributes to a long-term relationship with consumers. To achieve that, we considered the four dimensions of CSR (philanthropic, legal, organisation, and ethics) and used those constructs to evaluate the consumers’ relationship intention with companies. Our research was performed in MENA countries by interviewing 1632 consumers. Our findings showed that the philanthropic, legal, and ethical dimensions played a relevant role in determining a long-term relationship between the companies and consumers. This research results differ from the results gained by other researchers in previous studies. Therefore, to establish a long-term relationship with consumers, MENA countries’ companies should focus on philanthropy, legal, and ethics. This study extends, as well as contributes to the extant corporate social responsibility literature by offering new evidence on the impact of corporate social responsibility on consumer relationship intention. The findings will help regulators and policy-makers in evaluating the adequacy of the current corporate social responsibility reforms to prevent management misconduct and scandals.

Environmental, social, and governance disclosure impact on cash holdings in OECD countries

AlEmadi

Abu-Asi

et al. 2023

JGR

In this research, we investigate how cash holdings are affected by the environmental, social, and governance (ESG) disclosure practices of corporations. This research provides valuable insights into the ongoing discussion all across the world on ESG disclosure, and mainly 5 countries from the Organisation for Economic Co-operation and Development (OECD), which are the United States of America, Canada, the United Kingdom, Japan, and Australia, over the period 2012–2021. We used Refinitiv Eikon database to measure the variables. The results show there is a significantly negative relation between ESG disclosure and cash holdings in the introduction, growth, and shake-out/decline stages. Lower cash holdings are associated with higher firm performance and a positive value of cash. In spite of using different econometric parameters, other measurements, extra control variables, propensity score matching, and an instrumental variable approach, our results remained unchanged (Arayssi et al., 2020). This paper has recommendations for policymakers, investors, and business organizations. Importantly, our study reveals how higher levels of ESG disclosure lead to better cash-holding practices (Buallay, 2022).