The Corporate Governance Practices: Evidence from MENA Countries

AlHares, Aws; Dominic, Gerard; Abed, Ruba Al

doi:10.4236/tel.2019.94065

Cited by 12 publications

(3 citation statements)

References 55 publications

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“…It was also confirmed that this is largely the case in Hong Kong, where members of founding families are directors and executives of their firms and own the majority of the stock (Chen and Jaggi, 2000;AlHares, 2017). Theoretically, when managers own most of the firm's stocks, this can accentuate the free rider issue in that there is less monitoring of management, and there is risk of takeover by management (Shleifer and Vishny, 1997;AlHares et al, 2019). However, an alternative explanation is provided by several studies for the role of directors and management entrenchment.…”

Section: Do and Randd Intensitymentioning

confidence: 99%

Corporate governance mechanisms and R&D intensity in OECD countries

Alhares¹

2021

IJCG

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The effect of ownership structure and board structure on risk-taking as calculated by R&D intensity in OECD countries is investigated in this study. Around 2010 and 2019, a panel of 300 businesses from Anglo-American and European countries were used. The relationships are investigated using the ordinary least square multiple regression analysis technique. The findings are robust to alternative measures and endogeneities. The findings suggest that institutional ownership, board size, independent directors, and board diversity all have a negative impact on risk-taking, with Anglo-American countries having a greater impact among Continental European countries. Director ownership, on the other hand, is statistically insignificant, according to the findings. This study contributes to the current corporate governance literature by providing additional evidence on the impact of ownership and board structure on risk-taking in two different cultures. The findings will help OECD regulators and policymakers in assessing the effectiveness of recent corporate governance reforms in preventing management misconduct and scandals.

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Section: Do and Randd Intensitymentioning

confidence: 99%

Corporate governance mechanisms and R&D intensity in OECD countries

Alhares¹

2021

IJCG

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“…Recent research in Middle East area also provide evidence that the cognitive creativity of internal audit has a significant role in detecting creative accounting practices [16]. Another study that is conducted on MENA countries showed that the applications of corporate governance and volumetry discloser is still low in MENA region and it varies among countries in this area [17]. Al-Hajaya [18] examined the effect of audit committee on enhancing audit quality as one of the main tools of corporate governance.…”

Section: Literature Reviewmentioning

confidence: 99%

The Role of Corporate Governance Mechanisms in limiting Creative Accounting Practices: A View from Specialists in Middle East Countries

عبد الله الرقيب,

عبد الحميد

2023

المجلة العلمية للبحوث التجارية (جامعة المنوفية)

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This study aims to determine the role of corporate governance in limiting the risk of creative accounting practices from the perspective of accounting experts. Creative accounting practices were one of the reasons behind the emergence of the global financial crisis that hit the economies of several countries around the world. These practices led to a lack of reliability of financial data, which in turn had a significant impact on the evaluations and decisions that were made by internal and external stakeholders. By using survey responses submitted by professionals in several Middle East countries, this study investigated four important corporate governance mechanisms that are designed to limit creative accounting practices. These are accounting and auditing standards, the role of the internal auditor, the role of the external auditor and the role of audit committees. The study concludes that, in the opinion of accounting experts, audit committees and external audit mechanisms have the greatest ability to prevent creative accounting practices. This is the first time that a sample of accounting experts from multiple countries in the Middle East region has been used to investigate mechanisms which could reduce creative accounting practices. This research is based on the opinions of the survey participants. Even though they are qualified and experienced, we are aware that these opinions cannot be taken as facts. Instead, this research could be considered as qualitative research that suffers from full objectivity.

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“…Companies in countries with this type of legal system would not have to engage in as much monitoring as companies in countries where this information is missing. Therefore, the cost of capital in countries with good legal systems would be relatively low (Hail & Leuz, 2006;AlHares et al, 2019;Li & Mohanram, 2014;Hou et al, 2012).…”

Section: Introductionmentioning

confidence: 99%

Institutional Ownership and Cost of Capital: An International Study

AlHares¹,

Dominic²,

Abu-Asi³

2020

TEL

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This study investigates the impact of Institutional Ownership on Cost of Capital. A panel data of 200 companies from FORBES Global 2000 Leading Companies between 2010 and 2019 were used. The ordinary least square multiple regression analysis technique is used to examine the relationships. The findings are robust to alternative measures and endogeneities. The results show that institutional ownership is statistically positively related to cost of capital. This study extends, as well as contributes to the extant corporate governance literature by offering new evidence on the effect of institutional ownership on cost of capital. The findings will help regulators and policy-makers in evaluating the adequacy of the current corporate governance reforms to prevent management misconduct and scandals.

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The Corporate Governance Practices: Evidence from MENA Countries

Cited by 12 publications

References 55 publications

Corporate governance mechanisms and R&D intensity in OECD countries

Corporate governance mechanisms and R&D intensity in OECD countries

The Role of Corporate Governance Mechanisms in limiting Creative Accounting Practices: A View from Specialists in Middle East Countries

Institutional Ownership and Cost of Capital: An International Study

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