Saudi Cultural Missions Theses & Dissertations

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    FACTORS AFFECTING FINANCIAL PERFORMANCE AND CAPITAL STRUCTURE OF SAUDI ARABIAN INSURANCE COMPANIES
    (Universiti Teknologi Malaysia, 2024-04-30) Alsofiani, Ashwag; Maizaitulaidawati, Md Husin
    The insurance sector in the Kingdom of Saudi Arabia suffered from the poor performance of some insurance companies that faced challenges in coordinating their financial structure and were unable to cover their losses, which affected the overall performance of the insurance sector and led to liquidation in some cases. This research focuses on two main objectives: examining the effects of firm-specific and macroeconomic factors on the financial performance and capital structure of Saudi Arabian insurance companies. Previous insurance literature has primarily focused on firm-specific variables, while macroeconomic variables have received limited attention. Therefore, the researchers proposed that future research explore how macroeconomic factors affect the profitability of the Saudi insurance sector. This research aims to fill the gap in the existing literature by providing insights into the effects of multiple factors on the financial performance and capital structure of insurance companies in Saudi Arabia. Additionally, it emphasised the importance of each factor in understanding the overall performance of these companies. The underlying theories of the study included the capital structure theory, trade-off theory, pecking order theory, neoclassical theory and agency cost theory. The study utilised secondary data from 2010 to 2017, covering all 32 insurance companies listed on the Saudi Arabian Stock Exchange. Statistical techniques were employed to analyse the unbalanced datasets, including pooled OLS, fixed effects, and GMM. The regression results revealed several important determinants of Saudi insurance companies’ financial performance, including leverage, tangibility, economic growth, inflation, and interest rates. The findings indicated these factors are significant determinants of financial performance, while profitability, liquidity, company size, and tangibility affect the capital structure of insurance companies. The exclusion of the ROE model due to GMM requirements highlights its limitations. The study revealed that the dynamic model by GMM estimation is more efficient than the static model by OLS and fixed-effect models. These insights provide valuable knowledge for managers and policymakers in supporting the realisation of Saudi Arabia's Vision 2030 and contribute to filling the gaps in the existing insurance literature.
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    THE ROLES OF INTENSIVE AND EXTENSIVE EXPORT DIVERSIFICATION ON ECONOMIC GROWTH AND FEMALE LABOR FORCE PARTICIPATION
    (2023-04-06) Binmahfuth, Wafa Naif; Morshed, Mahbub
    This dissertation is divided into three chapters, and each focuses on export diversification, a crucial economic issue, particularly for emerging nations. In the first chapter, we examine the role of intensive and extensive export diversification in the macroeconomy, and thus we analyze the effects of different forms of export diversification on economic growth, growth volatility, and export volatility. We use cross-section and time series techniques for our panel data set from 118 countries for the period 1970 to 2019. We analyzed the impact and nature of the relationship between export diversification and economic growth by employing the system Generalized Method of Moments (GMM) estimation technique and export diversification measured by the Theil index, and we find that export diversification has a positive and significant effect on economic growth. In the second chapter, we examine the effects of export diversification on female labor force participation (FLFP) using data from 118 countries over the period (1990-2019). We also focus on what type of export diversification increases employment opportunities for women in developing and emerging economies. We find that the introduction of new products in the export basket (extensive export diversification) imparts stronger effects on female labor force participation. In the third chapter, we examine the macroeconomic performances of the KSA and the UAE focusing on the roles of export diversification. It is observed that the UAE made significant progress in diversifying its export basket compared to that of the KSA. Even during the 1990s, these two-dominant oil-producing countries were very close in terms of export concentration. The two countries are geographically and historically similar, but the UAE moved in a different direction in diversifying its economy in 2000 while the KSA has recently taken steps to promote export diversification in order to achieve stable economic growth. This suggests that a comparison of KSA and UAE growth performance over the 1990-2019 period would inform us about the growth and export diversification relationship. We find that the KSA can benefit more from the introduction of more goods/services to its export basket than the UAE.
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