Saudi Cultural Missions Theses & Dissertations
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Item Restricted The Role Of The Board Of Directors Of Shareholding Companies Listed On The Saudi Stock Exchange In Achieving The Saudi Vision 2030 Towards A Sustainable Economy: A Study In Saudi Regulations And Legal Reform Proposals(Southern Methodist University, 2025) Alshiddi, Norah; Dean Camp, Martin L; First, Primary Advisor; Norton, Joseph JThe Kingdom of Saudi Arabia (KSA) has adopted a modern vision of economic reform, Vision 2030, using KSA’s economic resources to create a more diversified and sustainable economy. The KSA has launched several programs to help achieve these goals, including the National Transformation Program (NTP), which enacted numerous legal reforms to empower the private sector to be consistent with current international standards. The KSA issued a new Companies Law, amended Implementing Regulation of the Companies Law for Listed Joint Stock Companies (IRCL), and amended the Corporate Governance Regulations (CGR) to meet international best practices in corporate governance in order to create a sustainable private sector able to contribute a solid financial market. Since joint-stock companies are the basis of the financial market, the Vision 2030 programs have addressed them with the intention of supporting their sustainability and social responsibility. A joint-stock company's board of directors (BoD) has broad authority to supervise and plan the company's affairs. Whenever the BoD is competent and enlightened, its decisions will advance the company's sustainability planning. Therefore, the main focus of this study will be to examine how well the new legal reforms meet international standards and how they affect the BoDs of shareholding companies listed on the Saudi Exchange in in terms of their ability to achieve corporate sustainability. More specifically, this analysis will address the impact of legal reforms on the following areas: formation of the board, board committees, fiduciary duties of the board, and the board's role in regulating the relationship with stakeholders and in corporate social responsibility (CSR). These are important categories of analysis, as they relate to the success of companies in implementing the corporate governance best practices that make corporate sustainability possible. This dissertation will highlight the importance of these aspects of corporate sustainability in relation to the best corporate governance practices, and it will analyze the adequacy of Saudi laws for achieving sustainability. The principles of sustainability are inherent in Vision 2030 and its executive programs. However, the corporate governance practices in Saudi Arabia do not promote the adoption of sustainability. Saudi legal rules still need to address many factors that significantly shape the composition of the BoD and the roles which enable the BoD to fulfill its obligations to promote sustainability for the company and to adhere to the principles of best corporate governance. Deficiencies persist in Saudi legislation regarding several crucial elements in the formation of the BoD and its committees, such as the diversity of members, the inclusion of women, the proportion of independent members, and the extent of relevance between the selection of members of the BoD and its committees and the achievement of the company's objectives. Additionally, the committees' objectives need to be enhanced to align with the company's sustainability. The BoD has significant roles that affect its ability to carry out corporate sustainability effectively. Fiduciary duties and their influence on the board's decision-making capabilities are of particular importance. Although the Companies Law emphasized the fiduciary duties of the BoD for the first time, the current formulation of fiduciary duties may restrict the BoD from pursuing sustainable value for the company. Understanding the primary value of fiduciary duty is critical to determine if the company is acting for the shareholders' benefit or the company's long-term viability. Furthermore, regulating relationships with stakeholders contributes to establishing good value for the corporation, thus maximizing the organization's value. Some international corporate governance practices obligate the BoD to regulate the relationship with stakeholders. In Saudi Arabia, although the CGR encourages such regulation, this encouragement is not mandatory, which affects some critical aspects of dialogue with stakeholders. Moreover, CSR plays a crucial role in shaping the company's strategy towards sustainability. The CGR states that CSR policy is instituted by the ordinary general assembly (OGA) in accordance with the BoD's recommendation. This text may hinder a BoD's ability to embrace CSR as a strategic decision to maximize the company's long-term value. Chapter One provides a general introduction. Chapter Two highlights the background of Saudi shareholding companies, Saudi corporate governance and its theories, as well as corporate sustainability. Chapter Three covers the composition of the BoD, the BoD’s independence and diversity, and women's participation in the BoD in Saudi Arabia. The chapter will examine practices in Saudi Arabia compared with international practices in order to highlight the relationship between the BoD’s composition and the attainment of corporate sustainability. Chapter Four discusses the formation of board committees and how they relate to sustainability. Analysis in this chapter will focus on committee formation in Saudi Arabia compared with international practices. Chapter Five highlights some of the most critical roles of the BoD regarding practical aspects key to the creation of long-term value for the company. Specifically, this chapter focuses on fiduciary duties and the BoD's roles towards stakeholder involvement, as well as the BoD's role in CSR, because these roles are considered practical measures of the company's progress toward sustainability. The chapter will present the concepts defining these roles, analyze the current work in Saudi Arabia per the Companies Law and CGR, compare this with corporate governance practices to evaluate the ability of these roles to fulfill sustainability, and suggest developing the necessary roles. Chapter Six will outline proposals for legal reform in the IRCL and the CGR in concert with the issues discussed in this study. This dissertation is one of the early studies of the key provisions related to the BoD in the Companies Law and the CGR from the perspective of corporate sustainability. This study aims to improve the BoD's performance by providing recommendations to reform the IRCL and the CGR in ways which will enhance the sustainability of the economy and fulfill the aspirations of the Saudi government expressed by Vision 2030.16 0Item Restricted Capital Structure and Corporate Governance: Evidence from the Gulf Cooperation Council Countries(University of New England, 2024) Alharbi, Bader Sunaytan H; Yarram, Subba ReddyThe primary aim of this study is to assess the impact of corporate governance characteristics on the capital structure across firms in the Gulf Cooperation Council (GCC) countries. The study adopts a robust quantitative approach using a sample of companies listed (non-financial from 2010-2020) in the stock market in all six GCC countries, employing panel regression models. The empirical analysis finds evidence of the significant impact of both board characteristics and ownership on a firm’s capital structure. The study also explores the interplay between corporate governance characteristics, ownership structures, and internal firm factors in shaping the capital structure of GCC firms, particularly highlighting the nuances in Saudi Arabia.80 0Item Embargo The Impact of eXtensible Business Reporting Language (XBRL) on Financial Reporting Quality: The Case of Saudi Arabia(Queen Mary University of London, 2024) Alangary, Bushra; Mitrou, Evisa; Tsitsianis, NicholasThis thesis explores the impact of the eXtensible Business Reporting Language (XBRL) on financial reporting quality (FRQ), within the unique regulatory and economic context of Saudi Arabia. XBRL, a digital standard for financial reporting, has been globally recognised for its potential to enhance the efficiency, accuracy, and accessibility of financial information. While prior research predominantly focuses on the United States, this study shifts the attention to Saudi Arabia, a unique and rapidly developing market that mandated XBRL adoption in 2015 without introductory phases. Thus, my original contribution to knowledge is providing new insights into how XBRL influences financial reporting in a different socio-economic and regulatory environment, utilising a comprehensive measure of FRQ and including moderating factors. This study assesses FRQ through three main proxies: earnings management, reporting timeliness, and information asymmetry. Earnings management is measured using its two forms Accrual Earnings Management (AEM) and Real Earnings Management (REM), while timeliness and information asymmetry are assessed through reporting lags and bid-ask spreads, respectively. Also, this study tests the moderating effect that Managerial Ability (MA) and Corporate Governance (CG) have on the association between XBRL and FRQ. A quantitative approach is employed, utilising a dataset of publicly listed companies in Saudi Arabia from 2010 to 2021, examining financial reports before and after XBRL mandate. Through a comprehensive analysis, the study finds that XBRL mandate in Saudi Arabia increases earnings management, conditionally enhances timeliness, and weakly reduces information asymmetry. While the moderating effect of MA and CG vary across FRQ proxies, yet in general CG has limited effect compared to MA. The results of this thesis challenge the findings of prior literature as the positive effect of XBRL adoption appears to be conditional to the implementation approach, the aim of the implementation, and the socio-economic setting. The implications of these findings are profound in several aspects. For regulators, the results support the continued adoption and promotion of XBRL, not only in Saudi Arabia but also in other emerging markets with similar characteristics. For companies, the findings highlight the importance of investing in digital reporting tools to improve reporting quality and transparency. For investors, the study underscores the benefits of XBRL in reducing risks associated with information asymmetry. Overall, this research contributes to the broader understanding of XBRL’s potential to elevate financial reporting standards globally, particularly in similar economic environments.29 0Item Restricted Governance and Asset Allocation Strategies in the Investment Mutual Funds(Univeresity of Strathclyde, 2024-12) Alsubaie, Aseel; Moore, JedThis research examines the role of governance in asset allocation and portfolio management within the investment mutual fund sector. Modern governance frameworks, influenced by technological advances, ESG requirements, and market volatility, integrate risk management, sustainability, and operational efficiency. The study evaluates how governance structures incorporate ESG criteria, manage technology risks, and ensure resilience during market shifts. Findings suggest that funds with strong governance achieve balanced, risk-averse allocations through diversification and ESG integration. Additionally, AI and ML require governance adjustments to manage related risks. The study emphasizes the need for flexible governance frameworks to address future challenges in an evolving market landscape.27 0Item Restricted The Effect of Board of Directors’ Characteristics on the Dividend Policy for US Listed Firms(Cardiff University, 2024-09-05) Alomirah, Afnan Abdulrahman; Ojra, JafarThe purpose of this study is to examine whether the board of directors' characteristics impact dividend policy using a sample of US listed firms. This study uses two dividend policy measures (dividend payment declaration and dividend yield) and two main regressions (Logistic and Tobit regressions) to test the extent to which firms’ board size, gender diversity, board independence, age of directors, board meeting frequency and CEO duality have an effect the dividend payout policy after controlling for firm size, leverage, profitability, cash flow, and investment and future growth. Additionally, this study uses random effect Logistic and Tobit regressions to validate the study’s outcomes. Based on a sample of 398 non-financial and non-utility US firms listed on the Standard and Poor’s 500 index for the period 2012 to 2022, it was found that dividend policy is positively affected by gender diversity, while board size, independence, age, meeting frequency and CEO duality had shown mixed findings. The results suggest that firms tend to pay higher dividends with the presence of female directors on the board, which is also consistent with the outcome theory that states that female directors tend to utilise dividends as a monitoring tool to mitigate agency costs and ensure the protection of shareholders’ rights.35 0Item Restricted Do Expertise in Audit Committees Impact Audit Quality? Evidence from Saudi Arabia(Durham University, 2024-09-06) Alahmadi, Ammar; Chaudhry, GhafranThis dissertation investigates the impact of audit committee (AC) characteristics on audit quality (AQ), using audit fees as a proxy, within the context of Saudi Arabia’s top 100 publicly listed firms in 2023. The study is motivated by the increasing focus on corporate governance (CG) reforms, driven by a series of high-profile corporate failures globally and the evolving regulatory landscape in Saudi Arabia, particularly under Vision 2030, which aims to enhance transparency and governance standards and attract international investment. The primary aim of this research is to assess the influence of financial expertise within ACs on AQ, further distinguishing between accounting and non-accounting expertise, and to examine the impact of AC members holding multiple directorships. Using a quantitative approach, the study employs ordinary least squares (OLS) regression analysis to evaluate the relationship between AC characteristics and AQ, with data manually collected from the Tadawul Saudi Exchange Stock website, annual reports, and financial statements. The findings reveal a significant positive impact of AC financial expertise on AQ, as evidenced by higher audit fees. However, when expertise is segregated into accounting and non-accounting categories, neither type significantly impacts AQ, suggesting that the combined presence of diverse expertise enhances AQ more effectively. Furthermore, AC members holding multiple directorships also show a significant positive correlation with audit fees, indicating their broader governance experience contributes to more rigorous audit processes. This dissertation contributes to the literature by providing empirical evidence from an emerging market, highlighting the distinct roles of various types of expertise within ACs and introducing audit fees as a proxy for AQ in Saudi Arabia—a novel approach that diverges from traditional proxies such as earnings management and audit firm type. The findings have practical implications for regulators, policymakers, and firms seeking to enhance CG structures, aligning with Vision 2030’s goals of fostering international confidence and bolstering economic diversification through improved governance practices.20 0Item Restricted Corporate Governance and Comply or explain approach in the UK: evolution, impact, and limitations(Brunel, 2024-09-08) alshuwaier, Mohammed Ahmed; Zaccaria, ElenaThe UK corporate governance codes date back to the late 20th century. Their beginning is marked by the adoption of the comply or explain approach, which revolutionised corporate governance by giving the codes voluntary character. This approach provides that companies have the flexibility to choose between strict adherence to the code or the provision of justifiable explanations in case of deviations. Thus, comply or explain resulted in a departure from the rigid hard law instruments to regulate corporate governance and was a step forward for the development of internal structures for audit and control. What this study aims to answer is whether the comply or explain has a place in the present corporate governance practice and how it has contributed as a corporate governance approach in the last thirty years. Thus, a conclusion was reached that this principle has both positive and negative features; however, its place in the UK’s corporate governance practice remains crucial for providing guidance on corporate conduct. This study found that the UK corporate governance codes are prominent with their flexibility, accountability and transparency resulting from the application of comply or explain. Consequent to the adoption of this principle, a more dynamic and adaptable corporate governance landscape was formed. Companies are now encouraged to tailor the rules so that they fit their needs, since companies differ dramatically in size, functions, and economic place. This choice between compliance or explanation allowed companies to experiment and innovate, which in turn led to diverse and effective corporate governance practices. Simultaneously, this approach also required clear explanations in case of noncompliance, which fostered accountability and transparency within the company. However, the comply or explain is is not without its downsides. The most detrimental among them is the heavy reliance upon shareholders’ engagement since the latter are the ones responsible for evaluating the quality of explanations given by executive directors. Additionally, it was found that companies provide only formal compliance, as their ‘tick-thebox’ mentality does not allow them to apply the spirit of the voluntary recommendations rather than the text itself. Thus, the reflexivity of the process is under question.10 0Item Restricted The Role of Corporate Governance for SOEs in Contributing to Achieving the Country's Objectives: Evidence from Saudi Arabia(Loughborough University, 2024-09-17) Alkharashi, Nawaf; Schnyder, GerhardThe importance that the corporate governance of SOEs has when it comes to their contribution to the development of an economy is hinged on the fact that proper corporate governance positions SOEs to contribute positively to the efficiency and competitiveness of an economy. The research aims to critically assess the role of corporate governance in enabling State-Owned Enterprises (SOEs) to contribute to the achievement of a country’s goals, using the Saudi Vision 2030 as a case study. In this research, a qualitative research method is adopted, and the case study research approach is employed in this research. In line with the qualitative research method and the case study approach, data was collected using interviews, particularly semi-structured interviews. A thematic analysis approach was employed in analysing the data collected from the interview. In the interview conducted, a total of 12 participants were interviewed. The data analysed points to the fact that the strategic alignment of the corporate governance of SOEs with national objectives is facilitated by the role of PIF and government entities, decision-making, oversights, as well as monitoring and evaluation mechanisms in the SOEs. The findings from the research show that while there are both internal and external factors that threaten the ability of SOEs to contribute to national goals such as the Saudi Vision 2030, adaptability and flexibility of corporate governance structures play a role in helping the SOEs to navigate these challenges successfully, while active stakeholder engagement, performance evaluation mechanisms, as well as transparency and accountability all play roles in supporting the SOEs in ensuring their corporate governance strategies and activities align them with the Saudi Vision 2030.14 0Item Restricted An Empirical Investigation Into the Challenges and Obstacles of Implementing Effective Corporate Governance in Saudi State-Owned Enterprises(Cardiff University, 2024-03) Almahmood, Labeid; Karbhari, YusufCorporate Governance (CG) research has received significant attention in developed countries like the UK and the US, yet its exploration within state-owned enterprises (SOEs) in emerging economies remains relatively nascent. This research investigates the challenges and obstacles surrounding the implementation of effective CG in Saudi Arabian SOEs. Employing an exploratory research design, this study combines qualitative and quantitative approaches through comprehensive semi-structured interviews (N=40) and a questionnaire survey (N=157) with board of directors’ members, senior finance officials, other senior managers, and internal and external auditors. The findings delineate various challenges related to CG in Saudi Arabian SOEs. Notably, SOEs often lack fair policies and procedures for board nominations, resulting in political agendas infiltrating the process. Particularly, inadequate autonomy granted to SOEs exacerbates governance difficulties. Government domination of board directorships and scant independent director representation, as well as board members’ time constraints (due to concurrent government or private sector roles), further hinder board competence. The inadequate connection between board member compensation and social objectives also raises concerns regarding the integration of board compensation structures with the hybrid nature of SOEs operations. Institutional deficiencies such as the absence of a robust regulator further hamper the implementation of CG practices. This study also finds that the role of the Saudi Arabian General Court of Audit (GCA) and external auditors in SOEs governance is minimal, and disclosure practices primarily adhere to regulatory requirements, limiting voluntary disclosures. Intriguingly, internal audit functions suffer from resource deficiencies, reporting discrepancies, and routine audit practices that lack risk considerations, all of which undermine effective CG implementation. Senior managers also encounter constraints on operational autonomy, often viewing their positions as transient, whereas compensation structures fail to align closely with long-term objectives. Overall, this study makes several theoretical contributions to our understanding of CG in Saudi Arabian SOEs. Firstly, it illustrates how CG practices are sometimes adopted more for legitimacy purposes or coercive pressures rather than for their practical applicability. Employing Social Identity Theory, this study also highlights how board members’ self-perceptions as disparate groups hamper effective governance implementation. From an Agency Theory perspective, this research demonstrates that SOEs face the dilemma that increasing autonomy can amplify agency conflicts while reducing interference. It also critically examines the role of independent directors, finding that, despite their structural presence, they frequently face difficulties in voicing opposition or providing constructive criticism. Additionally, contrary to the assumptions of Stewardship Theory, the study observes that executives often view their roles not as stewards of the organisation but as stepping stones to further their careers in either the public or private sectors. This, indeed, underscores a critical gap between theoretical expectations and practical behaviours. Finally, the study offers critical insights and actionable recommendations for policymakers to bridge the gap between theoretical frameworks and practical implementation to improve CG practices in Saudi Arabian SOEs.20 0Item Restricted The Impact of Corporate Governance on Financial Performance in Saudi Listed Companies(University of Sussex, 2024-09) Madini, Numair; Madini, NumairThis dissertation investigates the impact of corporate governance on the financial performance of Saudi-listed companies, focusing on key governance elements such as board independence, executive compensation, audit committee effectiveness, transparency, and internal controls. With Saudi Arabia's Vision 2030 serving as a backdrop, this study aims to understand how recent governance reforms and practices contribute to the financial outcomes of companies in a rapidly evolving economic environment. The research adopts a quantitative approach, analyzing data from a representative sample of Saudi-listed firms across various sectors. The findings reveal that robust corporate governance practices are strongly correlated with improved financial performance. Specifically, the presence of independent directors on company boards is associated with higher returns on equity and assets, underscoring the importance of unbiased oversight in corporate governance. Similarly, executive compensation that aligns with company performance positively influences long-term financial success, although the design of such compensation packages must carefully balance short-term and long-term incentives. Effective audit committees, characterized by their independence and financial expertise, play a critical role in ensuring the integrity of financial reporting and internal controls. The study also highlights the importance of transparency in financial reporting, with companies that adhere to stringent disclosure practices attracting more investment and enjoying lower capital costs. Additionally, strong internal controls and proactive risk management practices are essential for 2 maintaining financial stability and resilience in an increasingly complex and volatile business environment. The dissertation concludes that as Saudi Arabia continues to pursue its Vision 2030 goals, the adoption of global best practices in corporate governance will be crucial in achieving sustainable growth, attracting foreign investment, and ensuring the long-term success of its corporate sector. The findings provide valuable insights for corporate leaders, policymakers, and researchers, contributing to the ongoing development of corporate governance practices in Saudi Arabia and other emerging markets.26 0