Corporate Governance in Gulf countries: The Effects on firms' performance

Corporate Governance in Gulf countries: The Effects on firms
Masters
Dissertation
Finance & Accounting
Pages 4 (1004 words)
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Corporate Governance in Gulf countries: The Effects on firms' performance Name Institution Corporate Governance in Gulf countries: The Effects on firms' performance Table 1 presents the summary statistics for all the variables in all the GCC countries in all the six years studied…

Introduction

This falls within the Corporate Governance guidelines on size of boards. The number of executive directors on the board averaged 0.76 with a standard deviation of 0.83. Some years recorded the highest number of 8 executive board members while some had none of their board members being an executive. This means that some of the firms did not have their CEOs as board members. It is therefore interesting how the board interacted with the management of such firms since the CEO is always the link between the board and the executive management. Independent directors averaged 5.48 members with a standard deviation of 2.16. Some of the years recorded no independent board members while the maximum number of independent board members recorded was 12. Some of the firms therefore flaunted the corporate governance rules with none of the board members being independent in some of the years. Table 1 also shows that firm performance per year as measured by Tobin’s q averaged 1.878 with a standard deviation of 1.791. There was therefore a very high variability in firm performance as measured by the Tobin’s q. The minimum Tobin’s q was 0.142 while the highest was 12.899. Firm leverage ranged from the lowest of -7126.54 to the highest of 142,376. Some firms were therefore highly leveraged than the others. The mean leverage was 465.8 with a standard deviation of 21.2. ...
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