The impact of corporate governance on performance of companies: listed on the Saudi Stock Market - Dissertation Example

Only on StudentShare

Extract of sample
The impact of corporate governance on performance of companies: listed on the Saudi Stock Market

The adoption of corporate governance measures is generally accepted as a means of developing shareholder trust and confidence in the midst of economic shocks and volatile financial markets. The need for information is paramount in assessing the risk to investors and to the business. In Saudi Arabia, where family owned and controlled corporations proliferate, the urgency to adopt corporate governance measures is paramount to assuage the fears of the global investing market. The study determined that nearly all the indicators for measuring corporate governance do not significantly influence the financial performance of the 90 Saudi listed firms that comprised the research sample. The fact that many of these firms are owned by family groups is a possible explanation for this lack of significant relationship. Of the factors measured, only majority shareholder concentration proved to significantly influence the financial performance of Saudi firms as measured by the return on equity. ...
Download paper

Summary

The impact of corporate governance on performance of companies: Specialized study of companies listed on the Saudi Stock Market. Abstract The study sought to investigate the adoption of corporate governance among Saudi companies and how factors determinant of corporate governance has influenced the financial performance of Saudi listed firms…
Author : maximodavis

Related Essays

Determinants of Capital Structure of Listed Saudi Arabian Companies
The main purpose of this study is to identify and describe the principal determinants of capital structure for Saudi Arabian firms, when the firms are classified as to their industry. Likewise, there are distinguishing features of Islamic finance that may well set it apart from conventional finance, and may possibly influence the decision of finance managers to adopt a particular level of debt capital over others. Specifically, Islamic finance does not permit the charging of interest or riba as creditors’ compensation for the use of borrowed funds. In the absence of interest cost, which is a...
50 pages (12550 words) Dissertation
The development of corporate governance code in UK since 1992
The essay discusses that corporate failures such Maxwell Publishing Group, BCCI, Poly Peck and Coloroll in 1980s and early 1990s in UK brought the issue of corporate governance practices by publicly listed organizations. 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...
16 pages (4016 words) Essay
Stock Fund Performance Analysis for Selected Companies
The movement of the each of the stocks and the reasons for changes in the price level of each stock are analyzed. Lastly a comparative analysis has been done of this overall portfolio with respect to Dow Jones Industrial Average (DJIA) and one industry specific sector. The ultimate goal of this project to understand how the internal and external factors of business and economical environment positively or adversely affect the stock prices as well as the overall performance of a diversified market portfolio. This overall project has been done in two phases. In the first phase of the project...
17 pages (4267 words) Term Paper
The Impact of Corporate Governance Disclosure on the Financial Reporting Practices in a Developing Country: Saudi Arabia.
Nevertheless, lately the definition of corporate governance has gained a broader connotation and is denoted as the legal as well as corporate set of regulations and measures that symbolize the principles and procedures which are exercised to govern the corporate organizations. The standards of corporate governance by and large assist in making sure that the aspects of the allocation of power in an organization are well maintained and there exists accountability amongst the management. The most significant contributor of corporate governance comprise of the Board of Directors as well as the...
36 pages (9036 words) Dissertation
Discussion of the various issues related to corporate governance and its impact on financial performance of companies
The analysis includes a comprehensive literature review on corporate governance, its various mechanisms and the impact on financial performance of firms; as well as P.E.S.T analysis of the four companies. Impact of corporate governance mechanisms on modern companies Contents Sr.# Topic Pg. # 1. Introduction 4 1.1. Purpose of the study 5 2. Brief Background 10 2.1. Meaning and definition 10 2.2. Significance and relevance 11 3. Literature Review 14 3.1. Accounting & Finance Theory: Corporate Governance 14 3.1.1 Corporate governance mechanisms 18 3.1.2. Effect of corporate governance on earnings...
54 pages (13554 words) Dissertation
Summary of findings Saudi Arabia
The study was guided by the theoretical framework defined under the Technology Acceptance Model and the Innovation Diffusion Theory. TAM incorporated perceived ease of use, perceived usefulness, intention to use, and usage behaviour (Khosrow-Pour, 2006). On the other hand, Innovation Diffusion Theory enumerates stages through which innovation diffusion is introduced into society – awareness, early adoption by innovators, assessment and endorsement by opinion leaders, and finally acceptance by the general public (Baran & Davisi, 2011).
...
6 pages (1506 words) Essay
Public Listed Company Whose Corporate Governance Has Received Comment
It deals with structuring and allocating responsibilities within the companies or organization. For this purpose the Royal Bank of Scotland Group (RBS) is chosen to continue the discussion. So the corporate governance issues that exploded within the organization which resulted in major financial misbalances would be analyzed. A critical evaluation regarding the risk associated in this case would be made, so as to understand the identified risks and the approaches that were made from the side of management to combat the risks. Furthermore, a detailed analysis of the viewpoints of different...
7 pages (1757 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!