Download or read book A cross Saudi firm Analysis of the impact of corporate governance on the stock price performance during the recent financial crisis written by and published by SABIC Chair for IFMS. This book was released on with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Toward New Corporate Governance Standards in the Kingdom of Saudi Arabia Lessons from Delaware written by Meshal Faraj and published by SABIC Chair for IFMS. This book was released on 2016-02-14 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is currently a debate in the Kingdom of Saudi Arabia is over how directors of publicly held companies can be held accountable. Before addressing this question, we should determine when it is that a director violates her or his duties. This study seeks to bring focus to the accountability system in Saudi Arabia. It investigates a legal defect in that system: the Saudi Companies Law incorporates standards of conduct but lacks standards of review. This study argues that although directors’ duties have been formulated so that there are areas left to be developed by courts, Saudi judges do not retain residual lawmaking powers which they could use to fill a regulatory vacuum. It builds upon empirical evidence to prove the underlying reasons that the context has changed, which ultimately has created the need to reform the Saudi fiduciary duties system. New cases in Saudi Arabia evoke some of the contours of Delaware corporate law. New cases have triggered standards of conduct violations that might be identical to fiduciary violations in Delaware. Therefore, this study proposes to transplant Delaware standards of review to Saudi Arabia. It argues that the contextual change in Saudi Arabia after the establishment of the Capital Market Authority would make this transplant more significant. Closer analysis suggests that both systems are consensus on the shareholder primacy model. This convergence on the shareholder model inevitably ensures a functional convergence in the long run.

Download or read book The Effect of Corporate Governance on Firm Performance written by Michael Moustafa Mahmoud and published by . This book was released on 2017 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: This study investigates the impact of the separate elements of corporate governance on enterprise financial performance explained in three separate models (ROA, ROE, and Debt Ratio) for non-financial companies present within the S&P Pan Arab Composite Index. The data on corporate governance choices includes 225 firms for ten years from 2006 to 2015 gathered from ORBIS, Reuters Eikon, Datastream, as well as, annual and board reports. The firms included in this study are all listed respective to their country's stock exchange, which are present in eleven Arab countries namely: Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Tunisia and United Arab Emirates. The corporate governance variables are divided into board structure variables, ownership structure variables, and controlled variables. Furthermore, the topic attempts to understand the significance of the Arab Spring uprising on firm performance using the ROA and ROE measurements and debt ratio as a measurement of firm leverage. Furthermore, the data is used to compare the corporate governance variables five years before the Arab Spring uprising to the five years during/after the uprising. Regression results are demonstrated in the form of models. Model 1 shows the effect of corporate governance on firm performance measured by ROA. Results show that there is a significant positive relationship with board size, institutional ownership, audit type on firm performance measured by ROA, also there a significant negative relationship with duality, foreign ownership, firm size and the revolution variable on firm performance measured by ROA. Model 2 shows the effect of corporate governance on firm performance measured by ROE. Results show that there is a significant positive relationship with board size, institutional ownership, audit type on firm performance measured by ROE, also there a significant negative relationship with duality, firm size and the revolution variable on firm performance measured by ROE. Model 3 shows the effect of corporate governance on firm performance measured by Debt Ratio. Results show that there is a significant positive relationship with director ownership, foreign ownership, firm size, foreign exchange rate and the revolution variable on firm performance measured by Debt Ratio, also there a significant negative relationship with duality, institutional ownership and firm age on firm performance measured by ROE. After conducing Mann-Whitney U test, results show that the variables ROA, ROE, ownership concentration, director ownership, institutional ownership, foreign ownership, firm size, firm age, foreign exchange rate, outward foreign direct investment and inward foreign direct investment were a higher mean rank before the Arab Spring uprising compared to during/after the Arab Spring uprising. On the other hand, the variables ownership concentration, director ownership, institutional ownership, foreign ownership, firm size, firm age and GDP were a higher mean rank during/after the Arab Spring uprising compared to before the Arab Spring uprising.

Download or read book Corporate Governance in Saudi Arabia written by Hamad Alhumoudi and published by . This book was released on 2016-04-19 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Stock Market Reaction to the Global Financial Crisis written by Leonardo Becchetti and published by . This book was released on 2016 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyse with an event study approach the stock market reaction to one of the most important episodes in the global financial crisis (Lehman Brothers filing for chapter 11). Our inquiry on abnormal returns of about 2,700 stocks around the event date documents that the shock induces investors to incorporate insights from (or re-adjust the pre-event expected impact of) corporate social responsibility (CSR) ratings in stock evaluation in a sort of "flight to CSR quality". The main CSR domains with significant effects on abnormal returns (corporate governance and product quality) are exactly those in which the defaulted company presented weaknesses according to its ex-ante CSR ratings. We also document that the reaction to the Lehman event extends beyond the event date and that investors rationally attribute more value to the direct information on strengths and weaknesses in each CSR rating domain than to affiliation/non affiliation to the CSR stock market index (FTSE KLD 400 Social Index). A more general result of our paper is that investors seem to discover, after the event, that CSR ratings provide original information which is not captured by traditional financial rating indicators.

Download or read book Corporate Finance Practices and Corporate Governance Effect on Firm Performance and Information Leakage in Saudi Arabia written by Hamad Omar Hatrash and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Current Practices of Saudi Corporate Governance written by Faleh Salem B. Al Kahtani and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the most debated issues is that of corporate governance. The topic has been investigated by scholars from several scientific fields including the legal. Indeed, corporate governance has been examined by a great number of law scholars, with particular regards to the improvement of various aspects. For example, effective corporate governance focuses on protecting and advancing aspects related to shareholders' rights, the board of directors and corporations' internal and external audit systems. The main objective of this research is to suggest reformation to the Saudi corporate governance framework in order to achieve satisfactory corporate governance practices. The second purpose of the research is to investigate the current practices involved in Saudi corporate governance arrangements. The final aim is to determine how a Saudi corporate governance framework would most benefit corporate governance from the Islamic perspective. This study intends to provide a regulatory analysis to influence those regulations that should be implemented to adjust corporate governance practices as they affect the Saudi capital market. The researcher found that Saudi corporate governance has been promulgated in accordance with principles of on-going international corporate governance. Alternatively, the Islamic perspective on corporate governance has been debated more recently, as an idea that needs to be progressed in order to provide associated benefits to the corporate governance framework in Saudi Arabia. Therefore, Saudi corporate governance provisions can be seen as based largely on positive man-made laws. The researcher further discovered that Saudi corporate governance as an institutional framework is divided between several institutions, whether internal or external, which might result in some ambiguity when it comes to implementing good corporate governance practices. However, the research results revealed that Saudi corporate governance provisions have to be reformed in accordance with popular worldwide corporate governance principles, namely the UK Corporate Governance Code, the UK Companies Act and the OECD principles of corporate governance produced.

Download or read book The Impact of Corporate Governance and Ownership Structure on Performance and Financial Decisions of Firms written by Khaldoun Abd Allh Mahmoud Alwshah and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The State as a Shareholder written by Meshal Faraj and published by . This book was released on 2019 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Different studies show that partially privatized firms outperform their private peers in Saudi Arabia. Ownership of Saudi government of publicly traded companies may be feasible economically, but legally creates a hard case. The literature of corporate governance is still unable to absorb the implications of government ownership. This study attempts to examine those implications and its impacts on jurisdictions featuring dual judicial legal systems (administrative and civil courts) through presenting Saudi Arabia case. The Saudi government adopts the single tier board structure. Under this structure, only shareholders are entitled to elect board of directors. When the government holds a controlling stake, its leverage over a firm's affairs is difficult to challenge. Shedding lights on the Saudi experiment with government ownership, this study attempts to answer two questions that result from government ownership: procedurally, which court will review the government's actions, the administrative court or commercial court? Substantially, what law will govern these actions? The available evidence on the performance of firms partly owned by the government emphasizes the efficiency of government ownership. This implies that when the government exercises its rights as a shareholder it acts in a business-like capacity. Therefore, this study finds that its actions would be reviewed by the Commercial Courts and the Companies Act (Saudi Corporate Law) applies to it. Although there is no lawsuits against the government as a shareholder supporting this conclusion, but analyzing current regulations and rules would draw this conclusion. Finally, this article sketches policy implications scrutinizing potential proposals aimed at eliminating the complications of state intervention in the stock market.

Download or read book The Relationship Between Corporate Governance Indicators and Firm Value written by Attiya Y. Javed and published by . This book was released on 2007 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Corporate Governance Structure Efficiency and Bank Performance in Saudi Arabia written by Adel Hassan Al-Hussain and published by ProQuest. This book was released on 2000 with total page 115 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Corporate Governance on Moroccan Firm Performance written by Ouarda Dsouli and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Corporate Governance Voluntary Disclosure and Financial Performance written by Waleed Mohammed Albassam and published by . This book was released on 2014 with total page 376 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book An Assessment of the Impact of Corporate Governance Practices on the Values of Firms in the United Kingdom and Kingdom of Saudi Arabia written by Abdulrahman Al Harbi and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Corporate Governance on Financial Performance written by Muhammad Rizwan and published by . This book was released on 2016 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pakistan is an emerging economy which is based on financial performance of business organization. Sustainable financial growth of corporations depends on effective board performance. The study aimed to reflect the presence of effective principle based corporate governance in Pakistan and its impact on financial performance of a company. The reason to select this topic is, that in Pakistan as yet the complete model of financial performance have not been used to find out the above said relationship. The data was collected from top 20 companies which got registered in the Karachi Stock Exchange during the period 2007 to 2014. Financial performance of these organizations were measured by different financial ratios like Tobin's Q, ROA, MB, ROE and etc. while the inside ownership, board size, board independence, board diversity, presence of audit and remuneration committees and dividend payout ratios were taken as indicators of the corporate governance under the guide lines of the code of corporate governance 2002 and 2012 regulated by the Security and Exchange Commission of Pakistan (SECP). Results revealed that the inside ownership, board size, presence of independent/non-executive directors, dividend payout ratio and presence of audit committee had significant impact on organization's financial performance while the presence of remuneration committee and board diversity had no impact on firm's financial performance.

Download or read book Corporate Governance Institutional Framework and Firm Performance written by and published by . This book was released on 2019 with total page 384 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is concerned with the state of corporate governance regulations and implementation in the UAE and the extent to which board and corporate ownership structures in UAE listed firms play a role in promoting sound corporate governance and enhancing firms’ financial performance. The main objective of this dissertation is to investigate the influence of various corporate governance mechanisms on the financial performance of UAE publicly listed companies. Using ten years of panel data from 92 UAE companies (406 firm-year observations) listed on Abu Dhabi Exchange (ADX) and Dubai Financial Market (DFM), we test the role of board characteristics along with firms’ ownership structure on firm performance. Ordinary Least Squares (OLS) along with fixed effect and random effects panel regressions are used. Our results indicate that board independence, women board membership, ownership concentration, lack of CEO/board chair duality and family ownership all have, albeit with varying degrees of significance, positive effects on firm performance. On the contrary, cross ownership and state ownership seem to affect negatively the financial performance of UAE firms. For reasons, most likely, unique to the UAE, the empirical tests conducted by this research do not provide evidence of an impact of board size and foreign ownership on firm performance. Our main findings are robust to different measures of ownership concentration and to two forms of state ownership. They are also robust to further firm characteristics such as the size, age, and leverage and persist for both financial and nonfinancial firms. The dissertation is unique in many respects: it is the first comprehensive work that conducts such all-encompassing test of corporate governance hypotheses on UAE firms. It utilizes a unique database that was, specifically hand-collected for our study. It tests the relevance of corporate governance theories in the specific UAE institutional and economic setting.The findings of this dissertation are of great importance to the regulators and policy makers to understand the impact of currently adopted corporate governance regulations amongst the listed firms and to develop tailored policies to the context of UAE and suitable mechanisms to enforce those policies and regulations. Our findings may also be generalized to GCC and MENA countries given that they tend to share similar economic, social and political environments.

Download or read book Corporate Governance and Market Reaction to Stock Repurchase Programs written by Hala Hamid Dairy and published by . This book was released on 2007 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is a well known fact that a smart investor is an informed investor. Informat ion can come in several formats such as financial information, which comes prima rily from audited financial publications or statements. However, the validity o r accurateness of information comes from a firm's corporate governance practices . This study investigates the effect which corporate governance practices have on market reaction following a stock repurchase announcement. Our research indi cates that the market reacts more positively to programs announced by firms with better corporate governance practices with a 3-day cumulative abnormal return o f 1.86% for well governed firms as compared to 0.89% for bad governed firms. Fu rther, we confirm that corporate governance is one of the few pieces of informat ion that external investors use to evaluate the credibility of the "undervaluati on message" sent by managers announcing buyback programs. We test the firm under valuation using different proxies such as Book-to-Market Ratio, Free Cash Flow, Program size, and Firm size. The results obtained support the hypothesis that th e magnitude of market reaction is higher when the undervaluation signal is sent by well governed firms.