Corporate Governance and Firm Performance: Evidence from Saudi Arabia

This study aimed to measure the impact of Corporate Governance on Firm performance of listed companies in Saudi stock exchange. The study methodology was a pooled data collected from the Saudi stock exchange (TADAUWL) for the period from 2012 to 2014. The study sample is 171 listed companies. The study independent variable is Corporate Governance principals. The dependent variable is Firm performance which was measured using ROA, ROE and Tobin\u27s Q. The study also utilized five control variables in order to help measuring the relationship between Corporate Governance and Firm Performance. In conclusion, the study found that the governance level was 61.4% in Saudi stock exchange which is considered high compared to previous studies. The results of the study test indicate that there is no significant impact for corporate governance adoption on firm\u27s operational and financial performance in the listed companies in Saudi stock exchange. By testing the Tobin\u27s Q model the study also concluded that there’s no significant impact for ownership of the largest shareholder and independency of Board of Directors on firm\u27s market performance. Significant impact was found for the ownership and the size of the Board of Directors on firm\u27s performance

The level of sustainability reporting and its impact on firm performance: the moderating role of a country’s sustainability reporting law

This thesis was submitted for the award of Doctor of Philosophy and was awarded by Brunel University LondonThis thesis aims at investigating the moderating role of country’s sustainability reporting law on the relationship between the level of sustainability reporting and firm performance. To achieve this, two research questions need to be answered. What is the relationship between the level of sustainability reporting and firm performance? And, Is there an effect of country’s sustainability reporting law on the relationship between the level of sustainability reporting and firm performance? To answer these research questions, a positivistic research approach was adopted. A secondary data was used for this study, the data was facilitated the Bloomberg database. The sample includes data from 3,000 firms of 80 countries over 10 years (2008–2017), which provides 23,738 observations. The results show that sustainability reporting disclosure (environmental, social and governance) affects negative a firm's operational performance (ROA). However, when the components of ESG are considered separately it has a positive effect on a firm’s operational performance (ROA). On the other hand, sustainability reporting disclosure (ESG) does not affect a firm’s financial and market performance (ROE and TQ). Moreover, the results show that the inclusion of country’s sustainability reporting law (SRL) as moderator variable affects negatively the relationship between ESG and a firm’s operational performance. However, when the components of ESG are considered separately an SRL has a positive effect on the relationship between E, S and G and firm’s operational performance (ROA). On the other hand, the results show that the inclusion of SRL as moderator variable does not affect the relationship between ESG and a firm’s financial and market performance. This study makes a contribution to the knowledge in the area of sustainability reporting, and how the disclosure of ESG affects the performance of firms. Moreover, how the counrty’s sustainability reporting law affect the relationship between ESG and performance. The results of this study have significant implications for policy makers, regulators and government authorities, as they can recognise the effect of the sustainability reporting law on the relationship between ESG and different performance measures (operational, financial and market)

Corporate Governance and Firm Performance: Evidence from Saudi Arabia

This study aimed to measure the impact of Corporate Governance on Firm performance of listed companies in Saudi stock exchange. The study methodology was a pooled data collected from the Saudi stock exchange (TADAUWL) for the period from 2012 to 2014. The study sample is 171 listed companies. The study independent variable is Corporate Governance principals. The dependent variable is Firm performance which was measured using ROA, ROE and Tobin's Q. The study also utilized five control variables in order to help measuring the relationship between Corporate Governance and Firm Performance. In conclusion, the study found that the governance level was 61.4% in Saudi stock exchange which is considered high compared to previous studies. The results of the study test indicate that there is no significant impact for corporate governance adoption on firm's operational and financial performance in the listed companies in Saudi stock exchange. By testing the Tobin's Q model the study also concluded that there’s no significant impact for ownership of the largest shareholder and independency of Board of Directors on firm's market performance. Significant impact was found for the ownership and the size of the Board of Directors on firm's performance

Sustainability Reporting and Bank Performance After Financial Crisis: Evidence from Developed and Developing Countries

Purpose This study aims to examine the relationship between sustainability reporting and bank performance after financial crisis in developed and developing countries. Design/methodology/approach This study examines 882 banks from developed and developing countries covering 11 years after the 2008 financial crisis. The independent variable is environmental, social and governance (ESG) scores. The dependent variables are return on assets, return on equity and Tobin’s Q. This study uses bank- and country-specific control variables to measure the relationship between sustainability reporting and bank performance. Findings The findings deduced from the empirical results demonstrate that ESG improves banks’ accounting and market-based performance in developed countries, supporting value creation theory. Using pooling regression and instrumental variable – generalized method of moments, this study finds that ESG weakens banks’ performance in developed and developing countries. Originality/value To the best of the author’s knowledge, this is the first study to investigate and compare the impact of sustainability reporting on banks’ performance in developed and developing countries. The study found similarities in the impact of sustainability reporting and the improvement of banks’ current and future performance

Sustainability Reporting and Performance of MENA Banks: Is There a Trade-Off?

Purpose Sustainability reporting has been widely adopted by firms worldwide given stakeholders’ need for more transparency on environmental, social and governance (ESG) issues. This study aims to investigate the relationship between ESG and bank’s operational (return on assets [ROA]), financial (return on equity [ROE]) and market performance (Tobin’s Q) in a group of emerging countries in the Middle East and North Africa (MENA) region. Design/methodology/approach This study examines 59 banks listed on the stock exchanges of MENA countries over a period of 10 years (2008-2017). Only conventional banks with all data for at least two years are included in the sample. The core independent variable is ESG scores, and the dependent variables are ROA, ROE and Tobin’s Q. This study uses bank- and country-specific control variables to measure the relationship between sustainability reporting and bank’s performance. Findings The findings from the empirical results demonstrate a significant positive impact of ESG on performance and economic benefits to shareholders. However, the relationship between ESG disclosures varies individually; unlike the majority of published research, the authors found that social performance plays a negative role in determining bank’s profitability and value. Furthermore, the authors present evidence in support of the impact of bank- and country-specific factors in determining bank’s performance. Originality/value To the best of the authors’ knowledge, this is the first study to investigate the impact of sustainability reporting on banks’ performance in the MENA region. It provides evidence that questions the positive relationship between sustainability reporting and financial measures of performance