Saudi Cultural Missions Theses & Dissertations
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Item Restricted Capital Structure, ETF Flows, and Performance(Saudi Digital Library, 2025) Alkabbaa, Nayef; Kabir, MohammadThe aim of the dissertation is to study the impact of distinct financial variables such as ETF flows and capital structure on the performance of ETFs and firms. We investigate the heterogeneous effects of decomposed ETF flows, demand-driven, arbitrage-driven, and unexpected on abnormal returns across six ETF categories. Using a sample of 424 U.S. equity ETFs from 2000 to 2023 we run panel regressions, quantile models, and two-stage least squares (2SLS) estimations. The findings of this paper are in line with return-chasing behavior and crowding dynamics, demand flows are significantly associated with underperformance in index and Smart Beta ETFs, while active ETFs show less consistent effects. These effects persist across lag structures and are most pronounced in higher-performing quantiles. Under high volatility conditions, arbitrage flows improve alpha in most ETF classes. Unexpected flows generally lack predictive power, underscoring their idiosyncratic nature but their impact is more pronounced in sector active ETFs. Our findings challenge the one-size-fits-all approach of ETF flow analysis, suggesting the importance of ETF classification when evaluating flow-performance relationships We also study the relationship between capital structure and firm performance in the U.S. information technology (IT) sector during 2010–2022. Using panel data from 32 publicly listed IT firms (401 firm-year observations), we apply a comprehensive econometric framework including pooled OLS, fixed and random effects, quantile regression, 2SLS, and Pooled Mean Group ARDL. Return on equity and market capitalization are the two main performance measures in this paper, while capital structure is captured through total liabilities to total assets (debt ratio), cost of debt, and cost of capital. Results show a consistently negative impact of the cost of debt on both accounting- and market-based performance. At high leverage levels, debt ratio has a nonlinear and distribution-sensitive effect and is positive in long-run models. The capital structure outcomes confirm heterogeneity across firm types by using threshold and quantile regressions. Robustness checks validate the findings. Both papers highlight the distinct link between the impact of financial variables such as ETF flows and capital structure to the variation in performance level at both fund and firm level.7 0Item Restricted Does Information Technology Investment Impact a Firm Financial Performance? The Value of Appropriation Pathway(University of Colorado Denver, 2024) Alharbi, Abdulaziz; Gregg, DawnThe IT productivity paradox has long been a topic of considerable interest to information systems scholars. This is because, despite decades of research, the nature of the value appropriation pathway of IT investments remains elusive. In this dissertation, we seek to clarify the nature of the relationship between IT investments and firm performance using two distinct but related analytical approaches. In our first study, we draw upon the contingency model of the resource-based view of the firm to suggest that the nature of the relationship between IT investments and the firm’s financial performance depends upon the co-investment in complementary and non-complementary resources. We identified digital vulnerability as one of the key drawbacks of IT investments. Therefore, we predict that resources such as IT security, which lessen the digital vulnerability that businesses experience as a result of their technological investment, share a complementary relationship with IT investments and, as a result, positively moderate the relationship between IT investments and a firm’s financial performance. Alternatively, resources such as cloud computing, which increase the digital vulnerability that businesses experience as a result of their technological investment, share a non-complementary relationship with IT investments and, as a result, negatively moderate the relationship between IT investments and a firm’s financial performance. Overall, we observe that the performance implications of IT investments are significantly contingent upon the presence or absence of complementary and non-complementary resources. In the second paper, we focus on evaluating the performance implications of cloud computing, a type of IT investment that has been the subject of considerable scholarly and practical attention. Drawing upon the theory of dynamic capabilities, we theorize that because cloud computing is not owned or managed by the firms who subscribe to its services, it can best be categorized as an organizational capability instead of a tangible resource. According to dynamic capabilities, capabilities influence performance by increasing the efficiency of a firm’s resource management activities. Therefore, we predict that the relationship between cloud computing and a firm’s financial performance does not occur directly. Instead, it is fully mediated by increases in a firm’s resource management activities. To further establish the performance pathway of cloud computing, we identify three important contingency factors of the relationship between cloud computing and a firm’s financial performance, cloud computing service models, vertical integration, and firm size. Overall, we find that improvements in a company's resource management efficiency are what drive the performance implications of cloud computing and that the nature of the indirect relationship between cloud computing and a firm’s financial performance depends on important organizational and technological contingency factors. We observe broad support for each of our predictions across each study. Overall, our findings help to reconcile the IT productivity paradox by identifying under what circumstances (study 1) and through what pathway (study 2) IT investments impact a firm’s financial performance25 0Item Restricted Impact of Sustainability Reporting on Saudi-Listed Firms Performance under the Moderating Effect of Corporate Governance(Saudi Digital Library, 2023-07-14) Alhamami, Mahdi; Natoli, RiccardoWith the increasing preference for transparency in economic, environmental and social issues, sustainability reporting (SR) has become a broadly accepted practice for enterprises worldwide. Although SR is not a new concept, research focusing on the potential financial and non-financial benefits of SR is still limited, especially in the context of developing countries such as the Kingdom of Saudi Arabia (KSA). This research adopts a multi-theoretical perspective to examine how SR impacts corporate financial and non-financial performance. Since corporate governance (CG) is considered a potential method for improving SR transparency and efficacy, this research also investigates how specific CG mechanisms moderate this relationship. Although previous studies have examined SR and firm performance, they did not include a focus on Islamic items in SR. Additionally, the role of CG as a moderator in the relationship between SR and firm performance in the context of KSA remains unexplored. Therefore, the present research extends the literature by introducing a new framework through which to investigate CG mechanisms as moderating effects between SR and firm performance of KSA listed firms. This research adopted a quantitative approach and developed a modified global reporting initiative (GRI) disclosure index to collect secondary data through the manual content analysis technique from 121 listed firms. The present research also sourced the annual and sustainability reports for the data collection. The research’s variables included 1) the independent variables of total SR (TSR), economic SR (ECO), environmental SR (ENV) and social SR (SOC); 2) the dependent variable of financial performance, which is proxied by return on assets (ROA), return on equity (ROE) and Tobin’s Q (TQ), with non-financial performance being proxied by market share (MS) and internal business perspective (IBP); and 3) the moderating variable, which comprised the CG mechanisms of board size (BS), independent directors (ID), audit committee size (ACS), independence member of audit committee (IMAC), audit committee quality (ACQ), board gender diversity (BDG), government ownership (GOV) and foreign ownership (FOR). To test the research hypotheses, both univariate statistics (t-test) and fixed effect panel regression analysis were performed for two-panel datasets: 1) pre-COVID-19 (2015–2019, 596 firm–year observations and 2) including COVID-19 (2015–2020, 690 firm–year ii observations). Robustness testing was performed by employing the generalised method of moments (GMM) on the balanced panel data. The findings indicated that in KSA, the modified GRI index is more effective than the traditional GRI index. The research also found that SR and its three components (ECO, ENV, SOC) significantly and positively impact the financial performance indicators in the periods before COVID-19 and including COVID-19. Similarly, SR and its components demonstrated a positive significant relationship with non-financial performance in both data periods (pre and including COVID-19). Further, the findings associated with the moderating variables demonstrated that the CG mechanisms mostly did not moderate the nexus between SR and financial performance. Notably, GOV and ACQ demonstrated a significant moderating impact between SR and financial performance (ROA, ROE, TQ). The results further revealed that BS, ACS and GOV significantly affected SR and MS before COVID-19, while ID and BGD performed a similar role in the period including COVID-19. Similarly, the moderating variables BS and BGD were identified as significant moderators of SR on IBP both pre and including COVID-19. The results from this research offer insights for policymakers, practitioners and key stakeholders in KSA to achieve higher sustainability ratings and subsequently improve the financial and non-financial performance of listed firms. It also illuminates the moderating role of CG on the nexus of SR and firm performance. Practical and policy implications arising from this study include 1) strengthening the role of the board of directors; 2) highlighting the benefits of SR for profitability in KSA companies; 3) implementing comprehensive SR guidance and compliance for KSA listed firms; and 4) increasing the number of IDs, improving ACQ and encouraging the adoption of the International Financial Reporting Standards for effective SR.106 0