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Board of directors, audit committee characteristics and performance of Saudi Arabia listed companies


Al-Matari, Yahya Ali and Al-Swidi, Abdullah Kaid and Fadzil, Faudziah Hanim and Al-Matari, Ebrahim Mohammed (2012) Board of directors, audit committee characteristics and performance of Saudi Arabia listed companies. International Review of Management and Marketing, 2 (4). pp. 241-251. ISSN 2146-4405

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Abstract

This study examines the relationship between the internal corporate governance mechanism related to the board of directors, the audit committee characteristics and the performance of the Saudi companies listed in the Saudi stock exchange (TADAWL) in 2010, excluding financial companies. The statistical results of the study are not in line with the agency theory that board of directors and audit committee might mitigate agency problems leading to reduced agency cost by aligning the interests of controlling owners with those of the company.While audit Committee size (ACSIZE) is found to have a significant relationship with firm performance (but in the opposite direction to expectation), other hypothesized variables, the proportion of non-executive directors (BODCOM), CEO Duality (DUAL), Board Size (BSIZE), Audit Committee Independence (ACIND), audit committee meeting (ACMEET) were found to be as expected directions but insignificantly related to firm performance measure except the direction of the proportion of non-executive directors (BODCOM) was opposite to the expectations.

Item Type: Article
Uncontrolled Keywords: Corporate governance; Firm performance; Board of directors; Audit committee; Saudi Arabia.
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Othman Yeop Abdullah Graduate School of Business
Depositing User: Prof. Madya Dr. Faudziah Hanim Fadzil
Date Deposited: 09 Sep 2015 09:12
Last Modified: 19 Apr 2016 02:52
URI: http://repo.uum.edu.my/id/eprint/15433

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