Do the Board Characteristics influence the Firm Performance? An Experience with the Capital-Intensive Industries Listed in the Saudi Stock Exchange (TADAWUL)
Abstract The objective of the researchers in this article is to explore the relationship of board characteristics (board size, board meeting, number of board committees, board independence) on the firm performance (ROA & Tobin’s Q) in Saudi Capital-Intensive Industries for the data period of 2017-2020. Many researchers have tried to measure this relationship in earlier research papers, but the Capital-Intensive Industries have not been exclusively tested so far. This paper aims at filling this gap and measure the relationship of exclusive board characteristics and firm performance Capital Intensive Industries listed in Saudi Stock Exchange (TADAWUL). We find board size influences the firm performance in an opposite direction. On the other hand, board meeting influences the firm performance in a positive direction and both the results are statistically significant. The other board characteristics are not influencing the firm performance in this study. Additionally, the firm size is influencing the firm performance (positively with ROA and negatively with Tobin’s Q). Keywords: corporate governance, board of directors, board committees, firm performance, Tobin’s Q, ROE JEL Classification: G 21, G 30, G 32, G 34, L 25, O16
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