An Empirical Investigation of Corporate Governance Practices in the Kingdom of Saudi Arabia = دراسة تجريبية لحوكمة الشركات بالمملكة العربية السعودية

2019 ◽  
Vol 4 (2) ◽  
pp. 185-198
Author(s):  
Al Otaibi , Abdullah Thuail
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Empirical Investigation ◽  
Kingdom Of Saudi Arabia ◽  
Governance Practices

scholarly journals The Influence of Bank Governance on Improving the Financial Performance- An Empirical Study on the Banks Sector in the Kingdom of Saudi Arabia: أثر حوكمة المصارف علي تحسين الأداء المالي – دراسة تطبيقية على قطاع المصارف في المملكة العربية السعودية –

2019 ◽  
Vol 3 (8) ◽  
Author(s):  
Ghada Othman Al- Jahdali, Rawia Reza Obaid
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Financial Performance ◽  
Banking Sector ◽  
Cash Balance ◽  
Kingdom Of Saudi Arabia ◽  
Public And Private ◽  
Return On Equity ◽  
Before And After ◽  
The Impact

The study aimed to measure the impact of corporate governance on improving the financial performance in the banking sector in Saudi Arabia by measuring the impact of the profitability of Saudi banks، namely the profitability and liquidity indicators when applying governance. The analytical method was followed to achieve the objective of the study. The data of the financial statements were analyzed for the period 2010- 2017 to confirm six hypotheses related to measuring the existence of statistically significant differences between indicators of financial ratios before and after applying corporate governance. The results of the study showed that the liquidity indicators differ in 2010- 2013 (the accounting average of the cash balance ratio is 21%) from in 2014- 2017 (the accounting average of the cash balance ratio equals 18%)، which affected the rate of return achieved by the bank. The results also showed that excessive liquidity reduces profits، which is one of the Bank's most important objectives. Return on equity and return on assets were 4% and 1%، respectively، indicating that profitability is very low compared to high liquidity. The study recommended the need to promote the concept of corporate governance among all concerned parties and recommended the formation of specialized committees on governance in banks. Efforts should be made to adopt the concept of governance in the Kingdom of Saudi Arabia through cooperation between different public and private sectors.    

scholarly journals Sharīʿah governance and agency dynamics of Islamic banking operations in the Kingdom of Saudi Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abul Hassan ◽  
M. Sadiq Sohail ◽  
Md Mahfuzur Rahaman Munshi
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Agency Theory ◽  
Islamic Law ◽  
The Body ◽  
Islamic Banking ◽  
Gulf Region ◽  
Kingdom Of Saudi Arabia ◽  
Content Type ◽  
Banking Operations

PurposeThis study aims to investigate and point out the variations of agency theory in the context of Sharīʿah governance in Islamic banking operations in the Kingdom of Saudi Arabia (KSA).Design/methodology/approachThe study followed the approach of quantitative Corporate Governance Index (CGI) by computing the Gov-index (Gompers et al., 2003) and the Gov-score (Brown and Caylor, 2004; Saffieddine, 2009) to examine corporate governance (CG) issues using primary as well as secondary data. The primary data was generated from three full-fledged Islamic banks (IBs) and nine traditional banks with Islamic banking wings, all operating in the KSA. The approach was to provide an insight into the agency structure in the context of Islamic banking, which may lead to a trade-off between the conformity of Sharīʿah (Islamic law) rules and processes followed in safeguarding the rights of investors.FindingsThe majority of the Islamic banking services that are surveyed in this study acknowledge the significance of Sharīʿah governance and have implemented the fundamental methods, in conformity with this system. Certain flaws in Sharīʿah governance principles pertaining to audit, control and transparency are reported.Practical implicationsThe research outcomes will be invaluable to IBs aiming to improve existing SG practices. It also has implications for IB managers to design strategies while complying with regulations and to protect the interests of all investors without breaching the ethics of Sharīʿah.Originality/valueThis paper adds original value to the body of knowledge on agency relationship by analysing the dynamics of agency theory in the unique and complex context of Sharīʿah governance of IBs or those offering Islamic products in the KSA. The results can be used as a valuable feedback for improvement of Sharīʿah governance in the banking system in the KSA and the Gulf region at large.

scholarly journals Empirical Investigation into Compensation Preferences for Diversified Employees

2012 ◽  
Vol 2 (4) ◽  
pp. 118
Author(s):  
Ahmed Al- Asfour
Keyword(s):  
Job Satisfaction ◽  
Saudi Arabia ◽  
Organizational Performance ◽  
Extrinsic Motivation ◽  
Essential Role ◽  
Empirical Investigation ◽  
Kingdom Of Saudi Arabia ◽  
Employee Job Satisfaction ◽  
The Third ◽  
Intrinsic And Extrinsic Motivation

Motivational factors play an essential role with increasing employee job satisfaction. Satisfied employees in return can help improve organizational performance. Hence, it is the purpose of this paper to examine intrinsic and extrinsic motivation preferences between domestic and foreign employees working at a factory in the Kingdom of Saudi Arabia. Three hypotheses were developed and examined by the researcher. The first and second tests showed that foreign and domestic employees view both intrinsic and extrinsic motivation alike. The third hypothesis stated that the employees would prefer one motivation method, and indeed the t-test showed that employees rated extrinsic motivation more highly than intrinsic  Key words: Domestic & Foreign Employees Motivation, Intrinsic & Extrinsic Employees Motivation, Reward Systems

scholarly journals The relationship between corporate governance mechanisms and the performance of Saudi listed firms

2017 ◽  
Vol 14 (2) ◽  
pp. 338-349 ◽  
Author(s):  
Mamdouh Abdulaziz Saleh Al-Faryan
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Chief Executive Officer ◽  
Empirical Studies ◽  
Chief Executive ◽  
Direct Consequence ◽  
Listed Firms ◽  
Corporate Governance Mechanisms ◽  
Governance Practices ◽  
Code Of Corporate Governance

This paper gauges, both qualitatively and quantitatively, the pertinent variables to corporate governance practices and their relationship to business productivity in the context of the Kingdom of Saudi Arabia. This study was conducted in response to the limited literature in this context. A new code of corporate governance was issued by the Saudi Arabian Capital Market Authority as a direct consequence of the 2006 stock market crash; in 2010, the code was made mandatory for listed firms. Rigorous empirical studies are practical not only for Saudi Arabia and its policy makers but also potentially for solving global investment issues and ensuring security. This study found two variables to have a significant negative relation: chief executive officer turnover and independent board members. Thus, greater rates of chief executive officer turnover are associated with negative firm performance. In addition, independent board directors’ negative value was found to be very close to zero and significant only at the 10% level. Consequently, some caution is required when considering this result.

scholarly journals Corporate governance in Saudi Arabia: An overview of its evolution and recent trends

2020 ◽  
Vol 10 (1) ◽  
pp. 23-36
Author(s):  
Mamdouh Abdulaziz Saleh Al-Faryan
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Stock Exchange ◽  
Initial Point ◽  
Background Information ◽  
Governance Model ◽  
Governance Systems ◽  
Governance Practices ◽  
One Stop ◽  
Corporate Governance Model

In spite of growing interest in Saudi corporate governance systems, there is little literature on the evolution of Saudi corporate governance. This study helps close this gap by investigating and compiling corporate governance development in Saudi Arabia. After providing background information for Saudi Arabia and its corporate governance model, we touch on the Saudi legal system and key external institutions that helped shape its corporate governance. We examine the specific contributions of the accounting and auditing professions, and the roles of the National Anti-Corruption Commission and the Saudi Stock Exchange. We describe key reforms implemented to develop the Saudi economy and evaluate their importance in facilitating change in corporate governance practices. This study contributes as an initial point of reference for future studies on Saudi Arabia, and serves as a one stop resource for both academics and practitioners, while specifically benefitting foreign and domestic investors considering investments in Saudi Arabia.

Commercial Corporates governance in view of challenges of the Corona pandemic in the Kingdom of Saudi Arabia: حوكمة الشركات التجارية في ظل تحديات جائحة كورونا بالمملكة العربية السعودية

2021 ◽  
Vol 5 (19) ◽  
pp. 136-117
Author(s):  
Ola Dhaifallah Ahmed Al-Ghamdi Ola Dhaifallah Ahmed Al-Ghamdi
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Private Sector ◽  
Analytical Approach ◽  
Current Situation ◽  
Ethical Standards ◽  
Governance System ◽  
Improve Performance ◽  
Kingdom Of Saudi Arabia

The study aims at the effectiveness of governance in confronting the Corona pandemic on commercial companies and addressing the legal mechanisms of corporate governance in the Kingdom of Saudi Arabia. The researcher also explains the legal adaptation of the Corona pandemic and the efforts of the Kingdom of Saudi Arabia in confronting the pandemic on the private sector. The study also shows the most important professional and ethical standards to improve performance within commercial companies to reduce corruption. The comparative analytical approach has been applied so that the researcher sheds light on the current situation in the Kingdom of Saudi Arabia to face the effects of the Corona pandemic within the framework of commercial companies governance in addition to comparing some experiences in some other countries. The most important results are that the commercial companies that applied principles of governance are the most capable of facing and overcoming pandemics and crises. The study concludes the most important recommendations, which are the development of a commercial companies governance system so that the articles of the system are binding on all commercial companies in the Kingdom of Saudi Arabia.

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