The effect of royal family members on the board on firm performance in Saudi Arabia

Nasser, Zahra Al

doi:10.1108/jaee-04-2017-0041

Cited by 24 publications

(53 citation statements)

References 104 publications

(166 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As an alternative, debt was used by firms' owners as a disciplinary and encouragement tool for managers to reduce the agency cost of equity, and hence the overall agency cost (Milton and Raviv, 1991). Furthermore, agency cost theory is more applicable with regard to publicly listed firms, in which the separation of principal and agent is relevant, which is in line with this study sample of listed non-financial firms (Al Nasser, 2019).…”

Section: Literature Review and Hypotheses Developmentsupporting

confidence: 69%

هیکل رأس المال وأداء الشرکة: دلیل من الشرکات السعودیة غیر المالیة بموجب المعیار الدولی لإعداد التقاریر المالیة رقم 16(باللغة الانجلیزیة)

الحسين¹,

السلطان²

2021

مجلة الاسکندریة للبحوث المحاسبیة

View full text Add to dashboard Cite

This paper examines the relationship between capital structure and firm performance and considers the moderating effect on this relationship of the issuance of International Financial Reporting Standards (IFRS) 16. The study sample consists of 101 Saudi nonfinancial firms listed on the Tadawul between 2017 and 2020. The study uses two proxies for firm performance: an accounting-based measure using return on assets and a market-based measure using Tobin's q. Capital structure is measured using financial leverage. To avoid bias in the results, the study employs six control variables: growth, firm size, tangibility, risk, investment, and industry. The existing theory posits a positive relationship; however, using ordinary least squares regression, this study finds that high leverage firms in Saudi Arabia are associated with lower performance. IFRS 16 was only found to have a significantly positive impact on market performance.

show abstract

Section: Literature Review and Hypotheses Developmentsupporting

confidence: 69%

هیکل رأس المال وأداء الشرکة: دلیل من الشرکات السعودیة غیر المالیة بموجب المعیار الدولی لإعداد التقاریر المالیة رقم 16(باللغة الانجلیزیة)

الحسين¹,

السلطان²

2021

مجلة الاسکندریة للبحوث المحاسبیة

View full text Add to dashboard Cite

show abstract

“…The study uses market-based measure Tobin's Q as a proxy for firm performance. This measure reflects the market expectations of future earnings (Arouri et al , 2014), taking into account the risks faced by the firm and is not subject to manipulation like the accounting measures (Al Nasser, 2019). Stock return is one of the primary measures of firm performance (Jensen, 2002).…”

Section: Methodsmentioning

confidence: 99%

Annual report readability, agency costs, firm performance: an investigation of Oman's financial sector

Dalwai

Chinnasamy

Mohammadi

2021

JAEE

View full text Add to dashboard Cite

PurposeThe readability of annual reports is an important feature that determines the quality of communication between a firm and its stakeholders. Extant literature has demonstrated that readability characteristics of annual reports are crucial in facilitating the investor's ability to process and analyze information, resulting in higher firm performance and lower agency costs. This study examines the relationship between annual report readability, agency costs and the firm performance of listed financial sector companies in Oman.Design/methodology/approachUsing a sample of 150 firm-year observations of listed financial sector companies on the Muscat Securities Market (MSM) over the period 2014 to 2018, a panel regression analysis is used, along with the system generalized method of moments (GMM) estimation to address endogeneity concerns. The readability of annual reports is proxied by the length of the annual report, the Flesch reading ease and the Flesch–Kincaid index.FindingsThe ordinary least squares (OLS) results suggest that readability proxied by the length of the annual report has no significant relationship with agency cost, return on assets (ROA) or stock returns. The OLS results are confirmed through the system GMM estimation model for agency costs, Tobin's Q and stock returns. Easier-to-read annual reports measured by the Flesch reading ease demonstrate high asset utilization ratio and Tobin's Q. These results emphasize Flesch reading ease measure in explaining the economic significance of agency cost and Tobin's Q. In contrast, difficult-to-read annual reports are observed for firms with high ROA.Research limitations/implicationsThe study is limited to the financial sector. Its generalizability could be extended to a similar sector or countries with features similar to Oman. Future studies on readability could be extended to other sectors of Oman, and financial firms with easier-to-read annual reports show a high Tobin's Q, which reflects the confidence of investors in the stock market. These findings may encourage policymakers to regulate the readability features of annual reports and influence the reporting quality of financials and disclosures also including cross-country comparisons.Practical implicationsFinancial firms with easier-to-read annual reports show a high Tobin's Q, which reflects the confidence of investors in the stock market. These findings may encourage policymakers to regulate the readability features of annual reports and influence the reporting quality of financials and disclosures.Originality/valueWhile the study extends prior literature on readability, agency costs and firm performance, it is also one of the first to examine the financial sector of an emerging country, namely, Oman. The study supports the obfuscation hypothesis through the association of readability measure with agency cost. Unlike prior research that has focused on common computational linguistic literature, this study uses three proxies for readability to assess information quality.

show abstract

“…Moreover, scholars emphasized that markets around the world are becoming more globalized and integrated. A lack of understanding of these developing markets featured a missing part of the literature (Nasser, 2019). Thus, conducting this study will provide additional insight for expanding the literature of developing countries.…”

Section: Relationship Between Corporate Governance and Shareholder Valuementioning

confidence: 99%

Impact of Corporate Governance and Financial Sustainability on Shareholder Value

Sulimany¹,

Ramakrishnan

Chaudhry

et al. 2021

EEA

View full text Add to dashboard Cite

Good corporate governance can play a significant role for the company’s financial sustainability and share price. Over the last few decades, administrators, researchers, and educators constantly focused on the role of corporate governance. However, studies that have been emphasized on the relationship between corporate governance, financial sustainability, and shareholder value are scant. The main purpose of this study is examined good corporate governance and financial sustainability are predictor variables that helps companies to maximize share price in food & beverage sector in Saudi Stock Exchange. The data was collected from annual reports, DataStream and Saudi Stock Exchange (Tadawul). This study employs balanced panel data and statistical techniques like descriptive statistics, correlation matrix, pooled ordinary least square and mediation techniques (Baron & Kenny and Bootstrap Approach) was tested. The results reveal that financial sustainability mediates the relationship between corporate governance (board size) and shareholder value (share price) of companies in Saudi Arabia. This study contributes by adding mediator financial sustainability between board size and share price in a developing market with particular reference to food & beverage sector in Saudi Stock Exchange.

show abstract

The effect of royal family members on the board on firm performance in Saudi Arabia

Cited by 24 publications

References 104 publications

هیکل رأس المال وأداء الشرکة: دلیل من الشرکات السعودیة غیر المالیة بموجب المعیار الدولی لإعداد التقاریر المالیة رقم 16(باللغة الانجلیزیة)

هیکل رأس المال وأداء الشرکة: دلیل من الشرکات السعودیة غیر المالیة بموجب المعیار الدولی لإعداد التقاریر المالیة رقم 16(باللغة الانجلیزیة)

Annual report readability, agency costs, firm performance: an investigation of Oman's financial sector

Impact of Corporate Governance and Financial Sustainability on Shareholder Value

Contact Info

Product

Resources

About