Got a tricky question? Receive an answer from students like you! Try us!

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

Only on StudentShare
Finance & Accounting
Pages 4 (1004 words)


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…

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

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. ...
Download paper
Not exactly what you need?

Related Essays

Corporate governance
There is no set definition of corporate governance and mostly depends upon the specific country’s view and oversight of the issue. Generally, it is known as a system of rules and principles as to how an organization should be governed and controlled. The roots of corporate governance lie in ‘Agency Theory’, which explains the problem of principal-agent. The managers or agents are bestowed…
16 pages (4016 words)
Performance: A Case Study of Kuwaiti Companies Before and After the Credit Crisis
individual holds both positions of Chairperson and CEO (Kwok 1998). This is a phenomenon that has been commonly observed in countries with weaker regulatory and accounting frameworks. There have been various studies in the past around the globe regarding differences in duality within boards of directors and the impact on company performance. Company shareholders assisted with these studies in…
16 pages (4016 words)
What is the state of corporate governance in the UK, USA, EU, Australia, Japan and the GCC countries?
It a discipline that focuses mainly on existing relationships between a company’s top management, its stockholders, boards, regulators, other stakeholders and auditors, and is a “system by which companies are directed and controlled” (Corporate Governance, nd., p.11). The system takes into account various market and regulatory structures, while also considering objectives for governing…
35 pages (8785 words)
corporate governance
It is consisted of rules, which govern the relationships between stakeholders, shareholders and management (Ching et al, 2006). In the 1980s and early 1990s, some huge corporate scandals shocked the entire commercial world. Majority of the investors had lost their confidence over management of their investments; the entire commercial world was filled with distrust. To control this damage,…
4 pages (1004 words)
corporate governance
Cadbury Report highlights the role of Chairman and Chief Executive Officer. The Chairman must not be allowed to become CEO and the same is applicable to the vice versa at the same. The Chairman is primarily responsible for the board’s working, and for its membership balance subject to board and approval of shareholders (ecgi, web). The Greenbury report focuses on the directors’ remuneration…
4 pages (1004 words)
Corporate Governance Within Privately Held Firms.
According to Durand and Vargas (2003), four distinctive characteristics make private held companies receive less attention in comparison to public companies (p. 667). The first amongst these characteristics is the isolation of private firms from the pressures of capital markets. Secondly, private firms have a less efficient labor market from that of public companies, which is a result of the…
4 pages (1004 words)
Ownership and firm performance in Gulf countries
1.1 Background In 1932, Berle and Means published The Modern Corporation and Private Property which argued that the modern American business of the 1930s was better off if there was a separation of ownership and control. This created the grouping of the representation of shareholders and managers into distinct classes to promote efficiency and effectiveness. The idea was rooted in the fact that…
24 pages (6024 words)