The Relationship between Firm-Specific Characteristics and Board of Directors’ Diligence in Saudi Arabia

• 발행기관: 한국유통과학회
• 저자명: Khaled Salmen ALJAAIDI Omer Ali BAGAIS Anass Hamad Elneel ADOW
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.1, 733~739쪽, 전체 7쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.01.30

영문 초록

This study investigates the relationships of energy firm-level characteristics, namely; firm size, firm leverage, and firm performance with board diligence among companies listed in Saudi Stock Exchange (Tadawul) for the periods ranging from 2012 to 2019. The final sample of this study consists of 32 firm-year observations. A quantitative approach was adopted to test 3 specific hypotheses developed for the board diligence model. Using the Pooled OLS regression, this study finds that firm size and firm performance are negatively associated with board diligence. The results of this study indicate an insignificant association of firm leverage with board diligence. Besides, firm performance is related negatively to board diligence. This indicates that the board of companies with poor performance increases the number of its meetings because of the increased pressure on the board to improve its oversight operations and address the severe performance challenges. The increased number of board meetings observe the daily management of the company, increase the chances for discussions concerning the performance challenges, and come up with solutions faster. The directors are also likely to encounter heightened pressure to appear more engaged during a company’s financial distress since lenders require a meeting of the board or with the board.

목차

1. Introduction

2. Literature Review and Hypotheses Development

3. Research Design and Methodology

4. Empirical Results and Discussions

5. Conclusions and implications

References

키워드

Board Diligence Firm-Level Characteristics Saudi Arabia