Saudi Cultural Missions Theses & Dissertations

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    The Impact of Corporate Governance on Financial Performance in Saudi Listed Companies
    (University of Sussex, 2024-09) Madini, Numair; Madini, Numair
    This 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.
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    The firm-level impact of corporate governance mechanisms on firm performance of listed non-financial companies in Saudi Arabia.
    (universaty of Liverpool, 2024-09) Aljebreen, Sultan; Abuzeid, Mostafa
    There has been increased focus on desirable corporate governance practices linked with improved performance and firm stability. Therefore, this study sought to explore the influence of board factors as the determinants of the firm’s performance. Corporate governance mechanisms included board composition, audit committee features, and ownership, while profitability measured firm performance. The dissertation employed a quantitative research approach, and panel data was compiled from the Tadawul (Saudi Stock Exchange) for the period 2020-2023. Panel regression analysis was used to examine the relationship between corporate governance mechanisms and firm performance. The research results imply that the board of directors size has a significant positive influence on a firm’s performance, which could suggest that a large board, which in most cases differs in skills and experience, helps in developing strategic decisions that can enhance financial performance. On the other hand, CEO duality, meaning that the CEO is the same as the board chairman, was discovered as having a marginally negative influence on performance. This could be an indication of the problems with excessive concentration of power, hence diminishing the independence and efficacy of the board. Although other governance factors, including audit committee characteristics and ownership structure, were examined, they were not significantly linked to firm performance. Therefore, there may be a need for further studies to validate their influence on the relationship between corporate governance and financial performance in Saudi Arabia. Overall, the study offers significant insights to policymakers and corporate leaders in developing best practices for improving corporate governance in Saudi Arabia.
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    A Cross-country Study of Stakeholder Pressure on Oil and Gas companies’ Environmental Performance and Disclosures
    (RMIT University, 2024-06-25) Alomar, Tareq; Khan, Tehmina
    The oil and gas industry is a vital aspect of the global economy and is considered the main economic resource in many countries. However, this industry is responsible for numerous environmental issues, such as global warming, air pollution, hazardous discharges and catastrophic environmental events. These environmental issues have put pressure on oil and gas companies to be more environmentally responsible. The aim of this study is to investigate the impact of stakeholder pressure on voluntary environmental disclosures (VEDs) and environmental performance (EP) in oil and gas companies. It will employ stakeholder theory and the new institutional perspective of institutional theory to do the analysis. The research is a cross-country study in two phases. The first phase is a quantitative content analysis to investigate the impact of governmental environmental policies, board size, company size, and company leverage on the VEDs of 189 companies for 2019-2020 from 14 of the top oil producing countries in. Multiple regression was used in this stage to investigate the impact of independent variables on VEDs. The second phase is a questionnaire survey. Primary data is collected to investigate the impact of pressure from governments, customers, NGOs, shareholders, employees, and the pandemic on EP. The participants of the survey are managers and high-level employees linked to environmental practices of oil and gas companies. Structural equation modelling (SEM) was used to link the factors with the dependent variable (EP). The findings of the study will reveal that company size and board size have a significant positive impact on VEDs. Also, there has been a significant increase in oil and gas company 2 VEDs in 2020 compared to 2019. However, it would appear that governmental environmental policies, leverage, and profitability have a statistically insignificant influence on VEDs. On the other hand, governmental pressure, customer pressure and employee pressure have a significant positive effect on the EP of oil and gas companies. Pressure from NGOs, shareholders and the pandemic is statistically insignificant. This research contributes knowledge about voluntary environmental disclosures and environmental performance, specifically in the global oil and gas industry. Also, it contributes to a better understanding of the role of stakeholder group pressure and their impact on environmental practices and disclosure in this industry. This study also investigates the impact of the pandemic on environmental practices in the oil and gas industry. This study is one of the first academic studies to consider the pandemic's impact on the oil and gas industry’s VEDs and EP. Lastly, it provides an example of combining stakeholder theory and institutional theory to investigate the impact of stakeholders on a firm’s environmental performance and disclosure.
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