Saudi Cultural Missions Theses & Dissertations
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Item Restricted DOES AI INTEGRATION MODERATE THE RELATIONSHIP BETWEEN FIRM GROWTH AND PERFORMANCE IN SMES: THE INFLUENCE OF DECISION-MAKING AND OPERATIONAL PERFORMANCE(University of South Alabama, 2025-05) AlQahtani, Dalal T; Butler, Frank C; Gillis, William E; Hair Jr, Joe F; Scott, Justin TToday’s dynamic business environment requires small and medium-sized enterprises (SMEs) to keep up with technological advancements in order to remain competitive. Business growth creates more challenges for SMEs since they possess fewer available resources than big organizations. Since the introduction of artificial intelligence (AI), several SMEs have been able to compete more effectively and deliver better performance. As part of this research, I examine the possibility that AI integration (AII) will moderate the relationship between firm growth and both decision-making and operational performance, ultimately affecting the performance of SMEs. The aim of this research is to provide practical implications for AI as a strategic resource for improving decision-making capabilities, performance and growth by utilizing the resource-based view (RBV) and information processing theory (IPT). A partial least squares structural equation model (PLS-SEM) was used to analyze data from 338 SME business strategy decision-makers in the United States. In order to verify the measurement model’s reliability and validity, a Confirmatory Composite Analysis (CCA) was performed, followed by the evaluation of the structural model in order to test the hypotheses. In contrast to initial hypotheses, this study found that firm growth is positively related to both decision-making and operational performance. Nevertheless, the study results support the original hypothesis that both decision-making performance (DMP) and operational performance (OPP) positively affect a firm’s performance. Furthermore, AII significantly moderated the relationship between FG and OPP, while it did not significantly moderate the relationship between FG and DMP. This indicates the complexity of the role AI integration plays in SMEs. The paper concludes with recommendations for future research, as well as guidance for practitioners regarding how SMEs can improve their decision-making capabilities and performance using AI.12 0Item Restricted Islamic Finance, Dividend Policy, and Performance of Insurance Firms(The University of New Orleans, 2025-05) Almoaheem, Yazeed; Hassan, KabirThe dissertation investigates the impact of Covid-19 pandemic and dividend policy on the performance of insurance firms. It examines the impact of the Covid-19 pandemic on the performance of Islamic insurance versus conventional insurance firms in the Organization of Islamic Cooperation (OIC) member countries. Using Dynamic Capabilities theory and Resource Dependence Theory, the study examines the reasons behind the more significant performance reduction in Islamic insurance firms during the pandemic. Using firm- and country-level panel data from 425 insurance firms for 7 years (2016-2022) and employing different regression models, the analysis focuses on Return of Assets (ROA) and Asset Turnover Ratio as performance measures. The results indicate that Islamic insurance firms exhibited a greater reduction in performance, during the pandemic, compared to conventional firms, primarily due to weaker liquidity management and operational flexibility. Cash from operating activities (COA) was the key factor of lack of liquidity management, contributing to the underperformance of Islamic insurance firms during the pandemic. The findings highlight the need for improved liquidity management approaches in Islamic insurance firms to increase their resilience to future economic shocks. The dissertation also investigates the impact of dividend policy on the performance of 688 insurance firms globally from 2014 to 2022. Employing different econometric models, we find that dividend policy significantly increases both accounting (ROAA) and market (MKTCAP) performance. The findings align with the Dividend Signaling Theory and the Agency Theory of Free Cash Flow, which emphasize that dividend payouts signal a stable financial health and mitigate agency problems. Our findings demonstrate that consistent dividend payments (CONDIV) increase ROAA and MKTCAP by 0.007 and 0.139, respectively, which underlines the importance of consistent dividends. Channel analysis shows that corporate governance board committees, CEO duality, and board gender diversity amplify the positive effect of dividend policy, while larger board size diminishes it. This provides a global understanding of dividend policy significant impact on insurance firm performance. Jointly, the dissertation’s findings provide a complete picture to understand the financial decisions and governance structures that affect the performance of insurance firms during economic shocks such as Covid-19 pandemic and on the global stage.66 0Item Restricted Firm Performance Sustainability and Reputation(University of New Orleans, 2025-05) Alharbi, Mohammed; Hassan, M.KabirThe first essay investigates the impact of the COVID-19 pandemic on the performance of Sharia-compliant and non-compliant firms within the Organization of Islamic Cooperation (OIC) member countries. Employing panel data from 337 publicly listed non-financial firms between 2016 and 2022, the research compares profitability and growth metrics, specifically Return on Assets (ROA), Return on Equity (ROE), and firm growth rates. Using ordinary least squares (OLS) and random effects (RE) regression models, the analysis incorporates firm-specific variables. The findings indicate that both Shari'ah compliance and the COVID-19 pandemic negatively impacted firm performance. Sharia-compliant firms experienced significantly greater declines in ROA and ROE compared to non-compliant firms. Furthermore, compliant firms exhibited reduced growth rates, which highlights potential vulnerabilities stemming from ethical financing constraints and conservative investment practices. The interaction between Shari’ah compliance and the COVID-19 pandemic further worsened these adverse outcomes, indicating an increased vulnerability among compliant firms during times of economic disruption. A comprehensive regional analysis has identified that firms in Asia were particularly affected, thereby emphasizing the geographic variations in the impacts observed. The second essay is an empirical study of the relationship between Environmental, Social, and Governance (ESG) performance and corporate reputation. The goal is to address the existing gap in sustainability literature. This study employs a comprehensive panel dataset that includes 4,000 US firms from 2014 to 2023. The aim of this study is to investigate how ESG performance influences corporate reputation through annual and cumulative corporate responsibility awards. The study utilizes various econometric techniques to tackle issues concerning endogeneity and sample selection bias. The econometric techniques include logistic regression, Ordinary Least Squares (OLS), Two-Stage Least Squares (2SLS), Propensity Score Matching (PSM), Entropy Balancing, and Heckman selection models. The results consistently show that companies with better ESG performance are significantly more likely to be acknowledged with corporate responsibility awards. The strength of these findings is supported by various robustness analyses. The study examines how firm-specific characteristics, including company size, financial performance, and research and development, influence the relationship between ESG engagement and reputation outcomes. The evidence indicates that these factors enhance the positive impact of ESG performance on corporate reputation. The findings highlight the strategic value of ESG initiatives for corporate leaders and policymakers, which emphasizes their role in enhancing stakeholder trust and securing long-term competitive advantages.42 0Item Restricted Impact of the Audit Committee’s Characteristics on Enterprise Risk Management, Internal Audit, External Audit and Firm Performance in Saudi Arabia(RMIT University, 2024-02-07) Almodawi, Abdulkareem; Safari, Maryam; Yapa, PremHighly visible corporate collapses in the early twenty-first century, such as those experienced by Enron and WorldCom in the United States, as well as OneTel and Harris Scarfe in Australia, were the catalysts for a simultaneous decline in investor confidence (Robins 2006). Concerns regarding the ideal composition of corporate boards and their committees have become more pronounced among various stakeholders, including investors, scholars, practitioners, and global regulatory bodies. This increased level of scrutiny aims to ensure effective decision-making processes and the creation of value (Kim et al. 2014; Masulis et al. 2012). In the broader discussion on board composition and its committees, a notable aspect that has emerged is board diversity (Bernile et al. 2018). One of the primary justifications for emphasizing board members' diversity is to advance social justice principles (Van Dijk et al. 2012). Nevertheless, scholars and governing bodies have also put forth arguments grounded in the realm of economics. To illustrate, the presence of a varied collection of individuals within a specific group can counteract the occurrence of 'groupthink', a phenomenon associated with the Enron collapse (O'Connor 2002) and the Volkswagen emission problems (Glebovskiy 2019). Analyzing this matter through a lens of reliance on resources (Salancik and Pfeffer 1978), diversity expands the array of skills, capabilities, and expertise that a board and its committees can access. One important facet of corporate governance is the audit committee (AC), which oversees internal and external auditing and enterprise risk management. The enactment of the US Sarbanes-Oxley Act of 2002 brought about more stringent requirements regarding the AC's independence. Consequently, there was a decrease in the traditional ties between the board of directors and their committees or with executive management (CEOs). Nonetheless, in organizations where audit committees witnessed a reduction in members who had established ties to the CEO, approximately 24% of these vacancies were filled by individuals who possessed social affiliations. This emerging pattern raises concerns regarding the escalating significance of these informal associations within AC as an alternative, unregulated channel through which influence may be exerted on the AC's activities (Hwang and Kim, 2012). Bernile et al. (2018) Chen et al. (2017) found that diversity in the board of directors and its committees positively impacts the companies and reduces the agency problem. In Saudi Arabia, customary practices privilege familial and friendly relationships, which subsequently could impact an organizations' operational mechanisms (Common 2013). The bestowal and receipt of ‘wasta’ (roughly translated as nepotism) occurrs within networks of extended kinship and frameworks of organizations. Saudi Arabian managers exist within a cultural milieu in which social and professional ties assume significant and influential roles in institutional and group dynamics. Besides tribal, clan, and family loyalties, religion is the primary authority source in Saudi Arabia (Nevo 1998). The Muslim world is a society characterized by deep-rooted conflicts surrounding the notions of patriotism and territoriality (Nevo 1998). It is deemed that in all Arab nations, Wasta is deeply ingrained in the culture and influences every choice (Cunningham and Sarayrah 1993). Several academics have written about the Wasta phenomenon in Arab nations in the last ten years (Alenzi 2017; Alreshoodi 2016; Barnett et al. 2013; Cunningham and Sarayrah 1993; Harbi et al. 2017; Hutchings and Weir 2006; Tlaiss and Kauser 2011). According to Hutchings and Weir (2006), Wasta may be of utmost relevance regardless of an organization's objectives and track record. Strong social bonds have been established in Saudi Arabia through personal relationships and family status. Wasta access has a direct bearing on the hiring and advancement of individuals who have strong ties to their families (Alreshoodi 2016). This study aims to examine the impact of Saudi's unique socio-cultural relationships (social ties), namely regionalism and tribalism, kinship, and wasta, and professional ties among AC members on AC responsibilities (ERM, IA, EA) and then the impact of AC performance on firm performance. The researcher presents the perspectives, opinions, and experiences of AC members regarding their social and professional ties and how they affect AC performance. Then, the researcher considers how AC performance affects firm performance (FP). The study employs a mixed methodology of semi-structured interviews and surveys. This study contributes to the knowledge and literature on audit committees and corporate governance. It may have implications for policymakers, regulators and other government and business officials responsible for corporate governance and its implementation in Saudi Arabia. The findings indicate that pre-existing social ties among AC members, as opposed to a merit-based selection procedure, have a negative effect on AC performance. In contrast, professional ties have a positive impact on AC performance. Moreover, AC performance has a significant positive effect on firm performance. The findings provide insights into social and professional networks among AC members in Saudi Arabia. The most common ties among members are found to be professional and Wasta ties in the first place, then regionalism. Family ties follow this, and the last place is tribalism. Moreover, the findings uncovered that these social and professional ties are exclusive among AC members and extend to members of the company's board of directors and major investors. The analyses revealed that professional ties among members make them perform their duties professionally. In contrast, family relations and tribe relations negatively impact ACA, mainly because of social compliments among them. The regionalism among members is noticeable; most participants prefer sharing the same region among members. Furthermore, the critical reasons behind using social and professional ties among members were found to be trust and loyalty, merit: expertise, qualifications and experience, Legal loopholes, lack of databases for choosing a new member recruitment procedure, increased job satisfaction, financial benefits, pressure from society on members/chairs and control over the committee. Also, Family, Region, Tribe, and Wasta have a significant negative indirect effect on Firm Performance through (ACA). In contrast, professional ties significantly positively and indirectly affected Firm Performance through ACA. This study addresses the gaps in the literature concerning Social and professional ties within AC and, Their effect on ACA and then firm performance. To the researcher’s knowledge, this is the first project that brings the issue of socio-cultural relationships to corporate governance studies and explores the implications of such ties on ACA.34 0