The Influence of Board Ownership on Bank Performance: Evidence from Saudi Arabia

• 발행기관: 한국유통과학회
• 저자명: Omer Saeed HABTOOR
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.3, 1101~1111쪽, 전체 11쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.03.30

영문 초록

The current study aims to investigate the influence of different categories of ownership held by different types of board members on bank performance. The study uses a sample of Saudi listed banks for the period from 2011 to 2018. The results of the panel data analysis using firm fixed-effects regression model indicate that bank performance is significantly and positively affected by the chairman ownership and the CEO ownership. However, board independent members’ ownership has a negative influence on bank performance. While non-executive board members’ ownership and family board members have an insignificant impact on bank performance. Control variables, including board size, non-executive board members, government ownership, leverage, and bank size are significantly associated with bank performance. Overall, the results indicate that Saudi bank performance is higher in smaller banks that have smaller boards with lower non-executive members, lower portion of shares held by independent board members, higher portion of shares held by the chairman, CEO, and government, and higher leverage. The results of this study provide important implications for regulatory authorities and market participants in Saudi Arabia and countries with ownership concentration to understand the actual role of different categories of board ownership on firm performance in addition to optimize board ownership.

목차

1. Introduction

2. Literature Review and Hypothesis Development

3. Research Methodology

4. Empirical Results and Discussion

5. Conclusion

References

키워드

Board Ownership Chairman Ownership CEO Ownership Bank Performance Saudi Arabia