Corporate governance mechanism and firm performance in Saudi Arabia

Bazhair, Ayman Hassan

doi:10.25115/eea.v39i4.4317

Cited by 7 publications

(3 citation statements)

References 30 publications

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“…Corporate governance has a significant effect on corporate performance (H: β = 0.230, t = 2.242, p < 0.05), confirming the earlier studies by (Fallatah & Dickins, 2012) and (Bazhair, 2021) and negating (Buallay et al, 2017). The confirmation of H 3 supports the notion that those companies that actively focus on CG practices outperform operationally, financially and in market-based terms.…”

Section: Discussionsupporting

confidence: 77%

Corporate Governance and Corporate Performance with a Mediating Role of Corporate Social Responsibility—Case Study of Companies Listed on Saudi Arabian Exchange

Sarwar¹,

Al‐Faryan²,

Saleem³

2022

TEL

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The goal of the research was to find out how Corporate Governance, Corporate Social Responsibility, and Corporate Performance are linked in Saudi Arabian capital market. Domestic companies registered on the Arabian stock exchange make up the majority of the population. The research spans 11 years and includes data from 2010 to 2020. Data was extracted from audited annual reports of domestic companies listed on Saudi Arabian Exchange (SAE). The Hausman Test was used to determine that the Random Effect model was the best fit. To find endogeneity, we employed the Durbin-WU-Hausman test and the TSLS rather than the OLS. A model has been proposed to examine the relationship between corporate governance and performance, as well as that of corporate social responsibility (CSR) that acts as a partial mediator. This study has implications for the current and potential investors of the firms in the Kingdom Saudi Arabia in the context of choosing "socially participating" firms for their investment. Theoretically, this study also contributes to our understanding of some related concepts that have not been explored in previous researches concerning CG, CP and CSR. This can also be deduced from the finding that CSR partially contribute to enhance a firm's performance in the context of Saudi companies.

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Section: Discussionsupporting

confidence: 77%

Corporate Governance and Corporate Performance with a Mediating Role of Corporate Social Responsibility—Case Study of Companies Listed on Saudi Arabian Exchange

Sarwar¹,

Al‐Faryan²,

Saleem³

2022

TEL

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“…Nevertheless, the pooled effect size and the pooled confidence interval of the random effect model (0.13 [0.07 to 0.19]) are statistically significant. However, an examination of the forest plot (Figure 4) indicates that Bazhair (2021); Bazhair (2021); Habtoor (2021); Habtoor (2021); Habtoor (2021); Sulimany et al (2021) have wider 95% confidence intervals, meaning that the studies have less precision than the others. The predictors in these studies were board size and family-member board membership.…”

Section: Meta-analytic Model Testmentioning

confidence: 99%

Meta-Analytic Evidence for Board Characteristics as Correlates of Firm Performance Among Saudi Arabian Businesses

Algthami¹,

Hussin²

2022

IJARBSS

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“…On the other hand, firms with weak mechanism of corporate governance would be deficient to hold directors accountable, thus cannot guarantee shareholders wealth creation (Jensen and Meckling, 1976;Kyereboah-Coleman, 2008;Agyemang and Castellini, 2015). Many companies realized the concept of shareholder value and begin to implement initiatives for enhancing shareholder wealth (Bazhair, 2021;Sulimany et al, 2021). Once system of corporate governance is inadequate or absent, outside investors invest their capital to companies which have enough corporate governance framework to protect shareholder value.…”

Section: Introductionmentioning

confidence: 99%

Enhancing Shareholder Value through Corporate Governance Mechanism in Saudi Arabia

Sulimany¹,

Ramakrishnan

Bazhair

et al. 2021

EEA

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This study investigates the effect of corporate governance mechanism in relation to shareholder value in Saudi Arabia listed companies. In today’s business, shareholder value has a great concern to the company shareholders. Numerous studies have been investigated shareholder value but with inconsistent empirical evidence. The focus of this research is to examine the impact of corporate governance mechanism (board independence) on shareholder value measured by share price and dividend yield. This is an empirical paper which proposes to determine the extent of board independence on shareholder value in the perspective of Saudi Arabia. The current study employed pooling regression analysis to retailing sector companies in Saudi Stock Exchange (Tadawul) from 2010 to 2019. The research has found that the presence of non-executive directors on the corporate board enhanced shareholder value. Likewise, board independence has a significant positive impact on shareholder value. The proposed study has value for Saudi Arabia government, corporate boards, stock exchange, shareholders, and policy makers by highlighting the distinct impact on shareholder value and its relation on board independence.

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Corporate governance mechanism and firm performance in Saudi Arabia

Cited by 7 publications

References 30 publications

Corporate Governance and Corporate Performance with a Mediating Role of Corporate Social Responsibility—Case Study of Companies Listed on Saudi Arabian Exchange

Corporate Governance and Corporate Performance with a Mediating Role of Corporate Social Responsibility—Case Study of Companies Listed on Saudi Arabian Exchange

Meta-Analytic Evidence for Board Characteristics as Correlates of Firm Performance Among Saudi Arabian Businesses

Enhancing Shareholder Value through Corporate Governance Mechanism in Saudi Arabia

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