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
Abstract
This study investigates the directional predictability of exchange rates in emerging markets. Using a cross-quantilogram model, we show that
dependencies among emerging…
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…