Corporate governance and firm performance: A study of public listed companies in the Kingdom of Saudi Arabia

This thesis examines the relationship between CG mechanisms and firm performance among firms in the Saudi Stock Exchange (Tadawul) for the periods 2007-2011. Two models have been developed using the framework of agency theory, stewardship theory, and resource dependence theory to test this study’s h...

Full description

Saved in:

Bibliographic Details
Main Author:	Alzahrani, Abdullah Mohammed
Format:	Thesis
Language:	eng eng
Published:	2014
Subjects:	HD2709-2930.7 Corporations
Online Access:	https://etd.uum.edu.my/4900/1/s91740.pdf https://etd.uum.edu.my/4900/2/s91740_abstract.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uum-etd.4900
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Che Ahmad, Ayoib
topic	HD2709-2930.7 Corporations
spellingShingle	HD2709-2930.7 Corporations Alzahrani, Abdullah Mohammed Corporate governance and firm performance: A study of public listed companies in the Kingdom of Saudi Arabia
description	This thesis examines the relationship between CG mechanisms and firm performance among firms in the Saudi Stock Exchange (Tadawul) for the periods 2007-2011. Two models have been developed using the framework of agency theory, stewardship theory, and resource dependence theory to test this study’s hypotheses. Model 1 comprises three categories of determinants. The first category is board of directors’ characteristics: board Royal family members, board size, independence, board meetings, board financial knowledge, CEO duality, and board multiple directorships. The second category of determinants is audit committee characteristics: audit committee outside financial expertise, multiple directorships, size, independence, meetings, and financial expertise. The third category is ownership structure: Royal family, non-Royal family, government, and domestic corporate ownership. Model 2, including ownership structure, comprises board of directors’ effectiveness score and audit committee effectiveness score. This study utilizes the Weighted Least Squares (WLS) models. The final sample comprises 573 observations. The results showed that Royal family members, board size, and CEO duality are positively associated with firm performance. In contrast, board meetings, board financial knowledge, and board multiple directorship are negatively associated with firm performance, whereas board independence has no association. Audit committee characteristics, outside financial expertise, size, independence, and meetings are negatively associated with firm performance. In contrast, financial expertise is positively associated with firm performance, whereas multiple directorships have no relationship. For both models, ownership structure—Royal family, non-Royal family, government, and domestic corporations—is positively associated with firm performance. Board of directors’ effectiveness score and audit committee effectiveness score are positively associated with firm performance. It should be noted that the findings established in this study could be useful to regulators, especially the Ministry of Commerce and Industry (MCI), the Capital Market Authority (CMA), Tadawual, and the Saudi Organization for Certified Public Accounting (SOCPA) to improve CG practices. For companies, this study proposes that they should put more emphasis on enhancing the role and the quality of the board of directors and audit committee members, as they are involved in the decisions that improve firm performance
format	Thesis
qualification_name	Ph.D.
qualification_level	Doctorate
author	Alzahrani, Abdullah Mohammed
author_facet	Alzahrani, Abdullah Mohammed
author_sort	Alzahrani, Abdullah Mohammed
title	Corporate governance and firm performance: A study of public listed companies in the Kingdom of Saudi Arabia
title_short	Corporate governance and firm performance: A study of public listed companies in the Kingdom of Saudi Arabia
title_full	Corporate governance and firm performance: A study of public listed companies in the Kingdom of Saudi Arabia
title_fullStr	Corporate governance and firm performance: A study of public listed companies in the Kingdom of Saudi Arabia
title_full_unstemmed	Corporate governance and firm performance: A study of public listed companies in the Kingdom of Saudi Arabia
title_sort	corporate governance and firm performance: a study of public listed companies in the kingdom of saudi arabia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2014
url	https://etd.uum.edu.my/4900/1/s91740.pdf https://etd.uum.edu.my/4900/2/s91740_abstract.pdf
_version_	1747827824243245056
spelling	my-uum-etd.49002022-04-10T00:00:39Z Corporate governance and firm performance: A study of public listed companies in the Kingdom of Saudi Arabia 2014 Alzahrani, Abdullah Mohammed Che Ahmad, Ayoib Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HD2709-2930.7 Corporations This thesis examines the relationship between CG mechanisms and firm performance among firms in the Saudi Stock Exchange (Tadawul) for the periods 2007-2011. Two models have been developed using the framework of agency theory, stewardship theory, and resource dependence theory to test this study’s hypotheses. Model 1 comprises three categories of determinants. The first category is board of directors’ characteristics: board Royal family members, board size, independence, board meetings, board financial knowledge, CEO duality, and board multiple directorships. The second category of determinants is audit committee characteristics: audit committee outside financial expertise, multiple directorships, size, independence, meetings, and financial expertise. The third category is ownership structure: Royal family, non-Royal family, government, and domestic corporate ownership. Model 2, including ownership structure, comprises board of directors’ effectiveness score and audit committee effectiveness score. This study utilizes the Weighted Least Squares (WLS) models. The final sample comprises 573 observations. The results showed that Royal family members, board size, and CEO duality are positively associated with firm performance. In contrast, board meetings, board financial knowledge, and board multiple directorship are negatively associated with firm performance, whereas board independence has no association. Audit committee characteristics, outside financial expertise, size, independence, and meetings are negatively associated with firm performance. In contrast, financial expertise is positively associated with firm performance, whereas multiple directorships have no relationship. For both models, ownership structure—Royal family, non-Royal family, government, and domestic corporations—is positively associated with firm performance. Board of directors’ effectiveness score and audit committee effectiveness score are positively associated with firm performance. It should be noted that the findings established in this study could be useful to regulators, especially the Ministry of Commerce and Industry (MCI), the Capital Market Authority (CMA), Tadawual, and the Saudi Organization for Certified Public Accounting (SOCPA) to improve CG practices. For companies, this study proposes that they should put more emphasis on enhancing the role and the quality of the board of directors and audit committee members, as they are involved in the decisions that improve firm performance 2014 Thesis https://etd.uum.edu.my/4900/ https://etd.uum.edu.my/4900/1/s91740.pdf text eng public https://etd.uum.edu.my/4900/2/s91740_abstract.pdf text eng public Ph.D. doctoral Universiti Utara Malaysia Aba-Alkhail, K. I. (2001). Regulating the auditing profession in Saudi Arabia: the formulation of early auditing standards (Doctoral Dissertation, University of Essex). Abbott, L. J., & Parker, S. (2000). Auditor selection and audit committee characteristics. Auditing: A Journal of Practice and Theory, 19(2), 47-66. Abbott, L. J., Parker, S., & Peters, G. F. (2004). Audit committee characteristics and restatements. Auditing: A Journal of Practice & Theory, 23(1), 69-87. Abbott, L. J., Parker, S., Peters, G. F., & Raghunandan, K. (2003). An empirical investigation of audit fees, nonaudit fees, and audit committees. Contemporary Accounting Research, 20(2), 215-234. Abbott, L. J., Parker, S., Peters, G. F., & Rama, D. V. (2007). Corporate governance, audit quality, and the Sarbanes-Oxley Act: Evidence from internal audit outsourcing. The Accounting Review, 82(4), 803-835. Abdel Shahid, S. F. (2003). Does ownership structure affect firm value? Evidence from the Egyptian stock market. Evidence from the Egyptian Stock Market (January 2003). Abdul Rahman, R., & Al-Janadi, Y. (2006). Corporate Governance in Saudi Arabia. Journal of International Business and Entrepreneurship, 12(1), 1-16. Abdul Rahman, R., & Mohamed Ali, F. (2006). Board, audit committee, culture and earnings management: Malaysian evidence. Managerial Auditing Journal, 21(7), 783-804. Abdul Rahman, R., and Ali, F. H., 2006. Board, Audit Committee, Culture and Earnings Management. Managerial Auditing Journal, 21(7), 783-804. Abdul Wahab, E. A., How, J. C., & Verhoeven, P. (2007). The impact of the Malaysian code on corporate governance: Compliance, institutional investors and stock performance. Journal of Contemporary Accounting & Economics, 3(2), 106-129. Abdullah, S. N. (2004). Board composition, CEO duality and performance among Malaysian Listed Companies. Corporate Governance, 4(4), 47-61. Abu-Musa, A. A. (2006). Exploring perceived threats of CAIS in developing countries: the case of Saudi Arabia. Managerial Auditing Journal, 21(4), 387-407. Ackert, L. F., & Athanassakos, G. (2003). A simultaneous equations analysis of analysts’ forecast bias, analyst following, and institutional ownership. Journal of Business Finance and Accounting, 30(7‐8), 1017-1042. Adams, M. B. (1994). Agency theory and the internal audit. Managerial Auditing Journal, 9(8), 8-12. Adams, R., Hermalin, B., & Weisbach, M. (2010). The role of boards of directors in corporate governance: conceptual framework and survey. Journal of Economic Literature, 48(1), 20-47. Agrawal, A., & Knoeber, C. R. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. Journal of Financial and Quantitative Analysis, 31(03), 377-397. Agrawal, A., & Mandelker, G. N. (1990). Large shareholders and the monitoring of managers: The case of antitakeover charter amendments. Journal of Financial and Quantitative analysis, 25(02), 143-161. Aguilera, R. V., & Cuervo-Cazurra, A. (2004). Codes of good governance worldwide: what is the trigger? Organization Studies, 25(3), 415-443. Aguilera, R. V., & Cuervo-Cazurra, A. (2009). Codes of good governance. Corporate Governance: An International Review, 17(3): 376-387. Al-Abbas, M. (2006). Effect of information about auditor reputation and audit quality on Saudi Stock Market. King Haled University, Accounting Department. [In Arabic]. Al-Abbas, M. (2009). Corporate governance and earnings management: An empirical study of the Saudi market. Journal of American Academy of Business, Cambridge, Hollywood, 15(1), 301-310. Al-Abbas, M. A. (2008). Do Saudi companies underestimate us in the application of governance? Aleqtisadia Journal February 29, 2008, is available online at http://www.aleqt.com/2008/02/29/article_11668 .save. Al-Ammari, S. R. (1989). The development of accounting standards and practices in the Kingdom of Saudi Arabia. (Doctoral dissertation, University of Glasgow). Al-Angari, H. (2004). The impacts of compliance with local auditing standards on audit firms in the Kingdom of Saudi Arabia. King Abul-Aziz University Journal, 18(1), 165-203. Aldamen, H., Duncan, K., Kelly, S., McNamara, R., & Nagel, S. (2012). Audit committee characteristics and firm performance during the global financial crisis. Accounting and Finance, 52(4), 971-1000. Alexander, J. A., Fennell, M. L., & Halpern, M. T. (1993). Leadership instability in hospitals: The influence of board-CEO relations and organizational growth and decline. Administrative Science Quarterly, 74-99. Al-Farsy, F. (1997). Modernity and tradition, the Saudi Equation, Channel Islands: Knight Communication Ltd. Al-Ghamdi, S. A. (2012). Investigation into earnings management practices and the role of corporate governance and external audit in emerging markets: empirical evidence from Saudi Listed Companies (Doctoral dissertation, Durham niversity). Al-Hamidy, A. (2010). The global financial crisis: impact on Saudi Arabia. This volume BIS Papers,54, 347- 357. Al-Harkan, A. A. M. (2005). An investigation into the emerging corporate governance framework in Saudi Arabia (Doctoral dissertation, Cardiff niversity). Al-Hussain, A. H. (2009). Corporate governance structure efficiency and bank performance in Saudi Arabia. (Doctoral dissertation, University of Phoenix). Al-Hussaini, A & Al-Sultan, W. (2008). Development of enforcement mechanisms following adoption of international accounting standards in the Gulf Co-Operation Council member states. International Journal Of Business Strategy, 8(3), 50-71. Ali, A. J. (1990). Management theory in a transitional society: The Arab's experience. International Studies of Management and Organization, 20(3), 7-35. Ali, A. J. (1995). Cultural discontinuity and Arab management thought. International Studies of Management and Organization, 25(3), 7-30. Ali, A., Chen, T. Y., & Radhakrishnan, S. (2007). Corporate disclosures by family firms. Journal of Accounting and Economics, 44(1), 238-286. Al-Janadi, Y., Rahman, R. A., & Omar, N. H. (2013). Corporate Governance Mechanisms and Voluntary Disclosure in Saudi Arabia. Research Journal of Finance and Accounting, 4(4), 25-35. Aljifri, K., & Moustafa, M. (2007). The impact of corporate governance mechanisms on the performance of UAE firms: an empirical analysis. Journal of Economic and Administrative Sciences, 23(2), 71-93. Alkafaji, Y. A. (1983). An empirical investigation into the association between major politico-socio-economic factors and accounting practices in a sample of World Counties. (Doctoral dissertation, Mississippi State University). Allen, J. W., & Phillips, G. M. (2000). Corporate equity ownership, strategic alliances, and product market relationships. The Journal of Finance, 55(6), 2791-2815. Al-Moataz, E. (2003). The effectiveness of audit committees within Saudi Corporations: an empirical investigation (Doctoral dissertation, Loughborough University). Al-Moataz, E., & Basfar, A. (2010). The role of audit committees in corporate governance: An empirical investigation on Saudi corporations. Journal of King Abdulaziz University: Economics and Administration, 24(2), 193-239. Al-Moataz, E., & Hussainey, K. (2012). Determinants of corporate governance disclosure in Saudi companies. Journal of Economics and Management. Al-Mulhem, A. A. (1997). An empirical investigation of the level of financial disclosure by Saudi Arabian corporations (Doctoral dissertation, niversity of Hull). Al-Rasheed, M. (2002). A History of Saudi Arabia. Cambridge University Press. Al-Razeen, A., & Karbhari, Y. (2007). An empirical investigation into the importance, use, and technicality of Saudi annual corporate information. Advances in International Accounting, 20, 55-74. Alsaeed, K. (2006). The association between firm-specific characteristics and disclosure: the case of Saudi Arabia. Managerial Auditing Journal, 21(5), 476-496. Al-Sayari, H., S. (2002), Development of the Saudi banking system. SAMA. Al-Sehali, M., & Spear, N. (2004). The decision relevance and timeliness of accounting earnings in Saudi Arabia. The International Journal of Accounting, 39(2), 197-217. Al-Shammari, B., Brown, P., & Tarca, A. (2008). An investigation of compliance with international accounting standards by listed companies in the Gulf Co-Operation Council member states. The International Journal of Accounting, 43(4), 425-447. Alshetwi, M. A. M. (2011). The impact of internal audit function of financial reporting quality among Saudi listed companies. (Doctoral dissertation, Universiti Putra Malaysia). Al-Shiab, M., & Abu-Tapanjeh, A. (2005). Ownership structure and firm performance: The case of Jordan. Journal of Business Administration, 1(2). Al-Tonsi, F. (2003). A Cross-Finn analysis of the impact of corporate governance practices on corporate performance in Saudi Arabia. Conference of Corporate Governance Al-Gassim University. Al-Turki, K. H. (2006). Corporate governance in Saudi Arabia: overview and empirical investigation (Doctoral dissertation, Victoria niversity). Al-Twaijry, A. (2007). Saudi stock market historical view and crisis effect: graphical and statistical analysis. Journal of Human Sciences, Online Journal Available at: http://www.ulum.nl. Al-Twaijry, A. A., Brierley, J. A., & Gwilliam, D. R. (2004). An examination of the relationship between internal and external audit in the Saudi Arabian corporate sector. Managerial Auditing Journal, 19(7), 929-944. Al-Twaijry, A., Brierley, J., & Gwilliam, D. (2002). An examination of the role of audit committees in the Saudi Arabian corporate sector. Corporate Governance, 10(4), 288–297. Alzharani, A. M., Che Ahmad, A. B., & Aljaaidi, K., S. (2011). An empirical investigation of factors associated with firm performance: evidence from kingdom of Saudi Arabia. International Conference on E-business, Management and Economics,25, 30-36. Ameer, R., & Rahman, R. A. (2009). The impact of minority shareholder watchdog group activism on the performance of targeted firms in Malaysia. Asian Academy of Management Journal of Accounting and Finance, 5(1), 67-92. Ammer, J., Holland, S. B., Smith, D. C., & Warnock, F. E. (2008). Why do US crosslistings matter? [Internet document] (Social Science Research Network) [create May 2008], available from SRN:// parers.ssrn.com/so13/pares.cfm?abstract_ id=1146605. Amran, N. A. (2010). Corporate governance mechanisms, succession planning and firm performance: evidence from Malaysian family and non-family controlled companies. (Doctoral dissertation, Universiti Utara Malaysia). Amran, N. A., & Che Ahmad, A. (2009). Family business, board dynamics and firm value: Evidence from Malaysia. Journal of Financial Reporting and Accounting, 7(1), 53-74. Amran, N. A., & Che Ahmad, A. (2010). Corporate governance mechanisms and performance: Analysis of Malaysian family and non-family controlled companies. Journal of Modern Accounting and Auditing, 6(2), 1-15. Anderson, B. S., & Eshima, Y. (2013). The influence of firm age and intangible resources on the relationship between entrepreneurial orientation and firm growth among Japanese SMEs. Journal of Business Venturing. 28, 413–429. Anderson, R. C., & Reeb, D. M. (2003). Founding‐family ownership and firm performance: evidence from the S&P 500. The journal of finance, 58(3), 1301-1327. Anderson, R. C., Mansi, S. A., & Reeb, D. M. (2004). Board characteristics, accounting report integrity, and the cost of debt. Journal of Accounting and Economics, 37(3), 315-342. Ang, J. S., & Ding, D. K. (2006). Government ownership and the performance of government-linked companies: The case of Singapore. Journal of Multinational Financial Management, 16(1), 64-88. Archambeault, D., & DeZoort, F. T. (2001). Auditor opinion shopping and the audit committee: An analysis of suspicious auditor switches. International Journal of Auditing, 5(1), 33-52. Armour, J., Deakin, S., Lele, P., & Siems, M. (2009). How do legal rules evolve? Evidence from a cross-country comparison of shareholder, creditor, and worker protection. American Journal of Comparative Law, 57(3), 579-629. Arslan, O., Karan, M. B., & Eksi, C. (2010). Board structure and corporate performance. Managing Global Transitions, 8(1), 3-22. Ashbaugh-Skaife, H., Collins, D. W., & LaFond, R. (2006). The effects of corporate governance on firms’ credit ratings. Journal of Accounting and Economics, 42(1), 203-243. Audretsch, D. B., & Mahmood, T. (1994). Firm selection and industry evolution: the post-entry performance of new firms. Journal of Evolutionary Economics, 4(3), 243-260. Aussenegg, W., & Jelic, R. (2003). Operating Performance of Privatized Companies in Transition Economies-The Case of Poland, Hungary and the Czech Republic. In EFMA 2003 Helsinki Meetings. Australian Corporations Act. (2001) S.324 (10). Available at: http://www.comlaw.gov.au /Details/C2011C00173. Baek , J . Kang, J. and Park, K. (2004). Corporate governance and firm value: evidence from the Korea financial crisis. Journal of Financial Economics, 71, 265-313. Baek, J. S., Kang, J. K., & Suh Park, K. (2004). Corporate governance and firm value: Evidence from the Korean financial crisis. Journal of Financial economics, 71(2), 265-313. Bai, C. E., Liu, Q., Lu, J., Song, F. M., & Zhang, J. (2004). Corporate governance and market valuation in China. Journal of Comparative Economics, 32(4), 599-616. Baltagi, B. (2008). Econometric analysis of panel data. John Wiley & Sons. Banderlipe, M. S. (2009). The impact of selected corporate governance variables in mitigating earnings management in the Philippines. DLSU Business and Economics Review, 19(1), 17-27. Bantel, K. A., & Jackson, S. E. (1989). Top management and innovations in banking: does the composition of the top team make a difference? Strategic Management Journal, 10(S1), 107-124. Barclay, M. J., & Holderness, C. G. (1989). Private benefits from control of public corporations. Journal of financial Economics, 25(2), 371-395. Bauer, R., Frijns, B., Otten, R., & Tourani-Rad, A. (2008). The impact of corporate governance on corporate performance: Evidence from Japan. Pacific-Basin Finance Journal, 16(3), 236-251. Bauer, R., Guenster, N., & Otten, R. (2004). Empirical evidence on corporate governance in Europe: The effect on stock returns, firm value and performance. Journal of Asset Management, 5(2), 91-104. Baysinger, B. D., & Butler, H. N. (1985). Corporate governance and the board of directors: Performance effects of changes in board composition. Journal of Law, Economics, & Organization, 1(1), 101-124. Bazerman, M. H., & Schoorman, F. D. (1983). A Limited Rationality Model of Interlocking Directorates. Academy of Management Review, 8(2), 206-217. Beasley, M. S. (1996). An empirical analysis of the relation between the board of director composition and financial statement fraud. Accounting Review, 443-465. Beasley, M. S., & Salterio, S. E. (2001). The Relationship between board characteristics and voluntary improvements in Audit Committee composition and experience. Contemporary Accounting Research, 18(4), 539-570. Beasley, M. S., Carcello, J. V., Hermanson, D. R., & Lapides, P. D. (2000). Fraudulent financial reporting: Consideration of industry traits and corporate governance mechanisms. Accounting Horizons, 14(4), 441-454. Beatty, R. P. (1989). Auditor reputation and the pricing of initial public offerings. Accounting Review, 693-709. Bebchuk, L. A., & Hamdani, A. (2009). The elusive quest for global governance standards. University of Pennsylvania law review, 1263-1317. Bebchuk, L., Cohen, A., & Ferrell, A. (2009). What matters in corporate governance? Review of Financial Studies, 22(2), 783-827. Becht, M., Bolton, P., & Roell, A. (2002). Corporate governance and control Finance. Working Paper No. 02/2002 Updated August (2005), ECGI. Becker, C. L., DeFond, M. L., Jiambalvo, J., & Subramanyam, K. R. (1998). The Effect of Audit Quality on Earnings Management. Contemporary accounting research, 15(1), 1-24. Bedard, J. C., & Biggs, S. F. (1991). The effect of domain-specific experience on evaluation of management representations in analytical procedures. Auditing: A Journal of Practice and Theory, 10, 77-90. Bedard, J., Chtourou, S. M., & Courteau, L. (2004). The effect of audit committee expertise, independence, and activity on aggressive earnings management. Auditing: A Journal of Practice and Theory, 23(2), 13-35. Bennedsen, M., Nielsen, K. M., & Nielsen, T. V. (2007). Private contracting and corporate governance: Evidence from the provision of tag-along rights in an emerging market. Working paper. Benos, E., & Weisbach, M. S. (2004). Private benefits and cross-listings in the United States. Emerging Markets Review, 5(2), 217-240. Berle, A. A., & Means, G. G. C. (1932). The modern corporation and private property. Transaction Books. Bethel, J. E., Liebeskind, J. P., & Opler, T. (1998). Block share purchases and corporate performance. The Journal of Finance, 53(2), 605-634. Bhagat, S., & Black, S. (2002). The non-correlation between board independence and long-term firm performance. Journal of Corporation Law, 27(2), 231-274. Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal of Corporate Finance, 14(3), 257-273. Bhandari, S., & Weiss, L. (1996). Corporate Bankruptcy. Cambridge University Press. Bhagat, S., B. Bolton, and R. Romano, 2008, The promise and peril of corporate governance indices. Columbia Law Review, 108, 1803–1882. Bhojraj, S., & Sengupta, P. (2003). Effect of corporate governance on bond ratings and yields: The role of institutional investors and outside directors. The Journal of Business, 76(3), 455-475. Binder, G. (2009). Corporate governance in Arab countries: development of corporate governance in Arab and MENA countries. [Doctoral Dissertation]. University of Vienna, Vienna. Birnbaum, P. H. (1984). The choice of strategic alternatives under increasing regulation in high technology companies. Academy of Management Journal, 27(3), 489-510. Black, B., & Kim, W. (2012). The effect of board structure on firm value: A multiple identification strategies approach using Korean data. Journal of Financial Economics, 104(1), 203-226. Black’s Law Dictionary, (2009) 9th Edition. St. Paul, MN: West Group. Blair, M. M. (1995). Ownership and control: Rethinking corporate governance for the twenty-first century. Brookings Institution Press. Bley, J., & Chen, K. H. (2006). Gulf Cooperation Council (GCC) stock markets: The dawn of a new era. Global Finance Journal, 17(1), 75-91. Block, S. (1999). The role of non-affiliated outside directors in monitoring the firm and the effect on shareholder wealth. Journal of Financial and Strategic Decisions, 12(1), 1-8. Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees. (1999). Report and Recommendations of the Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees. New York, NY. Boardman, A. E., & Vining, A. R. (1989). Ownership and performance in competitive environments: A comparison of the performance of private, mixed, and state-owned enterprises. Journal of Law and Economics, 32(1), 1-33. Boon, K., McKinnon, J., & Ross, P. (2007). Attributes Affecting Auditor Appointment in Compulsory Audit Tendering: Survey Evidence. Boone, P., Breach, A., & Friedman, F. S. (2000). Corporate Governance in the Asian Financial Crisis. Journal of Financial Economics. Borokhovich, K. A., Brunarski, K., Harman, Y. S., & Parrino, R. (2006). Variation in the Monitoring Incentives of Outside Stockholders. Journal of Law and Economics, 49(2), 651-680. Boyd, B. K. (1995). CEO duality and firm performance: A contingency model. Strategic Management Journal, 16(4), 301-312. Bradbury, M. E., Mak, Y. T., & Tan, S. M. (2006). Board characteristics, audit committee characteristics and abnormal accruals. Pacific Accounting Review, 18(2), 47-68. Breusch, T. S., & Pagan, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The Review of Economic Studies, 47(1), 239-253. Brickley, J. A., Coles, J. L., & Jarrell, G. (1997). Leadership structure: Separating the CEO and chairman of the board. Journal of corporate Finance, 3(3), 189-220. Brierley, J. A., & Gwilliam, D. R. (2002). An examination of the role of audit committees in the Saudi Arabian corporate sector. Corporate Governance: An International Review, 10(4), 288-297. Bronson, S. N., Carcello, J. V., Hollingsworth, C. W., & Neal, T. L. (2009). Are fully independent audit committees really necessary? Journal of Accounting and Public Policy, 28(4), 265-280. Brown, P., Beekes, W., & Verhoeven, P. (2011). Corporate governance, accounting and finance: A review. Accounting and finance, 51(1), 96-172. Bugeja, M., Rosa, R. D. S., & Lee, A. (2009). The impact of director reputation and performance on the turnover and board seats of target firm directors. Journal of Business Finance & Accounting, 36(1‐2), 185-209. Burkart, M., Gromb, D., & Panunzi, F. (1998). Why higher takeover premia protect minority shareholders. Journal of political Economy, 106(1), 172-204. Bursa Malaysia Listing Requirements. Retrieved September 11, 2007, from http://www.klse.com.my/website/bm/regulati- on/rules/listing_requirements. Bushman, R. M., & Piotroski, J. D. (2006). Financial reporting incentives for conservative accounting: The influence of legal and political institutions. Journal of Accounting and Economics, 42(1), 107-148. Bushman, R. M., & Smith, A. J. (2001). Financial accounting information and corporate governance. Journal of accounting and Economics, 32(1), 237-333. Bushman, R. M., Piotroski, J. D., & Smith, A. J. (2004). What determines corporate transparency?. Journal of accounting research, 42(2), 207-252. Business Roundtable. (1997). Statement on corporate governance Governance Principles, 24-25. Byard, D., Li, Y., & Weintrop, J. (2006). Corporate governance and the quality of financial analysts’ information. Journal of Accounting and Public Policy, 25(5), 609-625. Byrd, J. W., & Hickman, K. A. (1992). Do outside directors monitor managers?: Evidence from tender offer bids. Journal of Financial Economics, 32(2), 195-221. Cadbury, A., Butler, J., Lipworth, S., Macdonald, N., Smith, A. H., Brown, S., & Item, A. (1992). Committee On The Financial Aspects of Corporate Governance. Gee, London. Cai, J., Qian, Y., & Liu, Y. (2009). Information asymmetry and corporate governance. Drexel College of Business Research Paper, (2008-02). Campbell, N. (1990). Holding audit committees accountable. Canadian Business Law Journal, 16(2), 134-159. Capital Market Authority. (2014). Available at: http://www. cma.org.sa. Capital Market Law. (2004). Is available online at http: http://www.cma.org.sa/En/AboutCMALaw/ Pages/default.aspx. Carcello, J. V., Hermanson, D. R., & Raghunandan, K. (2005a). Factors associated with US public companies' investment in internal auditing. Accounting Horizons, 19(2), 69-84. Carcello, J. V., Hermanson, D. R., & Raghunandan, K. (2005b). Changes in internal auditing during the time of the major US accounting scandals. International Journal of Auditing, 9(2), 117-127. Carcello, J. V., Hollingsworth, C. W., & Neal, T. L. (2006). Audit committee financial experts: A closer examination using firm designations. Accounting Horizons, 20(4), 351-373. Carcello, J., Hermanson, D., Neal, T., & Riley Jr, R. (2002). Board characteristics and audit fees. Contemporary Accounting Research, 19(3), 365-384. Carey, P., & Simnett, R. (2006). Audit partner tenure and audit quality. The Accounting Review, 81(3), 653-676. Cassell, C. A., Giroux, G. A., Myers, L. A., & Omer, T. C. (2012). The effect of corporate governance on auditor-client realignments. Auditing: A Journal of Practice and Theory, 31(2), 167-188. Cavana, R. Y., Delahaye, B. L., & Sekaran, U. (2001). Applied business research: Qualitative and quantitative methods. Singapore: John Wiley & Sons. Center for International Private Enterprise and Global Corporate Governance Forum. (2011). Advancing corporate governance in the Middle East and North Africa: Stories and Solutions. Available at www.cipe.org/public- ations/ bookstore/…/advancingCGin The MENA.p. Chaganti, R. S., Mahajan, V., & Sharma, S. (1985). Corporate board size, composition and corporate failures in retailing industry. Journal of Management Studies, 22(4), 400-417. Chahine, S. (2007). Activity-based diversification, corporate governance, and the market valuation of commercial banks in the Gulf Commercial Council. Journal of Management & Governance, 11(4), 353-382. Chahine, S., & Tohmé, N. S. (2009). Is CEO duality always negative? An exploration of CEO duality and ownership structure in the Arab IPO context. Corporate Governance: An International Review, 17(2), 123-141. Chami, R. (1999). What's different about family business? Computer World, 17, 67-69. Chan, K. C., & Li, J. (2008). Audit committee and firm value: evidence on outside top executives as expert‐independent directors. Corporate Governance: An International Review, 16(1), 16-31. Chaney, P. K., & Philipich, K. L. (2002). Shredded reputation: The cost of audit failure. Journal of Accounting Research, 40(4), 1221-1245. Chaney, P. K., Faccio, M., & Parsley, D. (2011). The quality of accounting information in politically connected firms. Journal of Accounting and Economics, 51(1), 58-76. Chaney, P., Jeter, D., & Shivakumar, L. (2005). Self-selection of auditors and size nonlinearities in audit pricing. Che Ahmad, A., Ishak, Z., & Manaf, N. A. (2003). Corporate governance, ownership structure and corporate diversification: Evidence from the Malaysian listed companies. Asian Academy of Management Journal, 8, 67-89. Che Ahmad, C., Houghton, K. A., & Yusof, N. Z. M. (2006). The Malaysian market for audit services: ethnicity, multinational companies and auditor choice. Managerial Auditing Journal, 21(7), 702-723. Chen, C., Lin, J. B., & Yi, B. (2008a). CEO duality and firm performance: An endogenous issue. Corporate Ownership & Control, 6(1), 58-65. Chen, J., Duh, R. R., & Shiue, F. N. (2008). The effect of audit committees on earnings–return association: evidence from foreign registrants in the United States. Corporate Governance: An International Review, 16(1), 32-40. Chen, K. Y., & Zhou, J. (2007). Audit Committee, Board Characteristics, and Auditor Switch Decisions by Andersen's Clients. Contemporary Accounting Research, 24(4), 1085-1117. Chen, K., & Zhou, J. (2007). Audit committee, board characteristics, and auditor switch decisions by Andersen's clients. Contemporary accounting research, 24(4), 1085- 1117. Chen, M. C., Cheng, S. J., & Hwang, Y. (2005). An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance. Journal of Intellectual capital, 6(2), 159-176. Chen, Y. M., Moroney, R., & Houghton, K. (2005). Audit committee composition and the use of an industry specialist audit firm. Accounting & finance, 45(2), 217-239. Chen, Z., & Cheung, Y.L. (2000). Corporate governance firm performance and agency conflicts in closely-held firms: evidence from Hong Kong. Working paper, City University of Hong Kong, Hong Kong. Chhibber, P. K., & Majumdar, S. K. (1999). Foreign Ownership and Profitability: Property Rights, Control, and the Performance of Firms in Indian Industry*. The Journal of Law and Economics, 42(1), 209-238. Chi, J. D. (2005). Understanding the endogeneity between firm value and shareholder rights. Financial Management, 34(4), 65-76. Chu, W. (2011). Family ownership and firm performance: Influence of family management, family control, and firm size. Asia Pacific Journal of Management, 28(4), 833-851. Cicero, D., Wintoki, M., & Yang, T. (2010). Do Firms Adjust to a Target Board Structure? In CELS 2009 4th Annual Conference on Empirical Legal Studies Paper, is available onlineat http://corporate- governancecenter.org/Research/CirMay11.pdf. Claessens, S., & Fan, J. P. (2002). Corporate governance in Asia: A survey. International Review of finance, 3(2), 71-103. Claessens, S., Djankov, S., & Lang, L. H. (2000). The separation of ownership and control in East Asian corporations. Journal of financial Economics, 58(1), 81-112. Clark, T. (Ed.). (2004). Theories of corporate governance, 1-31. New York: Routledge. Code of Corporate Governance in Saudi Arabia. Available at: http://www.cma.org.sa/Ar/Pages/Implementing_. Cohen, J., Krishnamoorthy, G., & Wright, A. M. (2002). Corporate governance and the audit process. Contemporary accounting research, 19(4), 573-594. Collier, P., & Gregory, A. (1998). Audit committee activity and agency costs. Journal of Accounting and Public Policy, 18(4), 311-332. Combined Code. (2003). The combined code on corporate governance. London: Financial Reporting Council. Conyon, M. J. (1994). Corporate governance changes in the United Kingdom. Corporate Governance: An International Review, 2, 87-99. Conyon, M. J. (1998). Directors' pay and turnover: an application to a sample of large UK firms. Oxford Bulletin of Economics and Statistics, 60(4), 485-507. Conyon, M. J., & Peck, S. I. (1998). Board size and corporate performance: evidence from European countries. The European Journal of Finance, 4(3), 291-304. Cools, S. (2004). The real difference in corporate law between the United States & Continental Europe: distribution of powers, 30 DEL. J. CORP Harvard Law School Cambridge, MA 02138, discussion paper No. 490, [Internet document]available 285 from: http://lsr.nellco.org/cgi/viewcontent. cgi?article=1278&context=harvard_ olin&sei-redir =1#search="The+Real+Difference+in+Corporate+Law +Between+ the". Coram, P., Ferguson, C., & Moroney, R. (2008). Internal audit, alternative internal audit structures and the level of misappropriation of assets fraud. Accounting & Finance, 48(4), 543-559. Core, J. E., Guay, W. R., & Rusticus, T. O. (2006). Does weak governance cause weak stock returns? An examination of firm operating performance and investors' expectations. The Journal of Finance, 61(2), 655-687. Core, J. E., Holthausen, R. W., & Larcker, D. F. (1999). Corporate governance, chief executive officer compensation, and firm performance. Journal of financial economics, 51(3), 371-406. Corporate Governance Regulation In Kingdom of Saudi Arabia. (2006). Capital Market Authority. Cox Jr, T. (1991). The multicultural organization. The Executive, 34-47. Cremers, K. J., & Ferrell, A. (2010). Thirty years of shareholder rights and firm valuation. In CELS 2009 4th Annual Conference on Empirical Legal Studies Paper. Da Silveira, A., Leal, R., Carvalhal Da Silva, A., & Barros, L. (2007). Evolution and determinants of firm-level corporate governance quality in Brazil. Available at SSRN 995764. Dahya, J., Dimitrov, O., & McConnell, J. J. (2008). Dominant shareholders, corporate boards, and corporate value: A cross-country analysis. Journal of Financial Economics, 87(1), 73-100. Dahya, J., Lonie, A. A., & Power, D. M. (1996). The case for separating the roles of chairman and CEO: An analysis of stock market and accounting data. Corporate Governance: An International Review, 4(2), 71-77. Dahya, J., McConnell, J.J., & Travlos, N.G. (2002). The Cadbury Committee, corporate performance and top management turnover. Journal of Finance, 57(1), 46I-483. Daily, C. M., & Dalton, D. R. (1994). Bankruptcy and corporate governance: The impact of board composition and structure. Academy of Management Journal, 37(6), 1603-1617. Daily, C. M., Dalton, D. R., & Rajagopalan, N. (2003). Governance through ownership: Centuries of practice, decades of research. Academy of Management Journal, 46(2), 151-158. Dalton, D. R., Daily, C. M., Ellstrand, A. E., & Johnson, J. L. (1998). Meta-analytic reviews of board composition, leadership structure, and financial performance. Strategic management journal, 19(3), 269-290. Dalton, D. R., Daily, C. M., Johnson, J. L., & Ellstrand, A. E. (1999). Number of directors and financial performance: A meta-analysis. Academy of Management Journal, 42(6), 674-686. Davidson, R., & MacKinnon, J. G. (1993). Estimation and Inference in Econometrics. New York: Oxford University Press. Davidson, R., Goodwin‐Stewart, J., & Kent, P. (2005). Internal governance structures and earnings management. Accounting & Finance, 45(2), 241-267. De Toledo, E. P. (2007). Quality of governance and firm performance: evidence from Spain. Available at http://idem.uab.es/treballs%20recer ca/eloisa%20perez.pdf. DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of accounting and economics, 3(3), 183-199. DeFond, M. L., Hann, R. N., & Hu, X. (2005). Does the market value financial expertise on audit committees of boards of directors? Journal of Accounting Research, 43(2), 153-193. Deli, D. N., & Gillan, S. L. (2000). On the demand for independent and active audit committees. Journal of Corporate Finance, 6(4), 427-445. Demb, A., & Neubauer, F. (1992). The corporate board: Confronting the paradoxes. Long range planning, 25(3), 9-20. Demirag, I., Sudarsanam, S., & Wright, M. (2000). Corporate governance: overview and research agenda. The British Accounting Review, 32(4), 341-354. Demsetz, H. (1983). Structure of ownership and the theory of the firm, The. JL & Econ., 26, 375. Demsetz, H., & Lehn, K. (1985). The structure of corporate ownership: Causes and consequences. The Journal of Political Economy, 93(6), 1155-1177. Denis, D. K., & McConnell, J. J. (2003). International corporate governance. Journal of Financial and Quantitative Analysis, 38(1), 1-36. Dewing, I. P., & Russell, P. O. (2000). Cadbury and beyond: perceptions on establishing a permanent body for corporate governance regulation. The British Accounting Review, 32(4), 355-374. DeZoort, F. (1998). An analysis of experience effects on audit committee members' oversight judgments. Accounting, Organizations and Society, 23(1), 1-21. DeZoort, F. T., & Salterio, S. E. (2001). The effects of corporate governance experience and financial-reporting and audit knowledge on audit committee members' judgments. Auditing: A Journal of Practice and Theory, 20(2), 31-47. Dharwadkar, R., George, G., & Brandes, P. (2000). Privatization in emerging economies: An agency theory perspective. Academy of Management Review, 25(3), 650–69. Di Pietra, R., Grambovas, C. A., Raonic, I., & Riccaboni, A. (2008). The effects of board size and ‘busy’ directors on the market value of Italian companies. Journal of Management and Governance, 12(1), 73-91. Djankov, S., & Hoekman, B. (2000). Foreign investment and productivity growth in Czech enterprises. The World Bank Economic Review, 14(1), 49-64. Dogan, M., Elitas, B. L., Agca, V., & Ogel, S. (2013). The impact of CEO duality on firm performance: evidence from Turkey. Doidge, C., Karolyi, G. A., & Stulz, R. M. (2004). Why are foreign firms listed in the US worth more? Journal of Financial Economics, 71(2), 205-238. Donaldson, L., & Davis, J. H. (1991). Stewardship theory or agency theory: CEO governance and shareholder returns. Australian journal of management, 16(1), 49-64. Donoher, W. J., Reed, R., & Storrud-Barnes, S. F. (2007). Incentive alignment, control, and the issue of misleading financial disclosures. Journal of Management, 33(4), 547-569. Douma, S., George, R., & Kabir, R. (2006). Foreign and domestic ownership, business groups, and firm performance: Evidence from a large emerging market. Strategic Management Journal, 27(7), 637-657. Dunne, P., & Hughes, A. (1994). Age, size, growth and survival: UK companies in the 1980s. The Journal of Industrial Economics, 42(2), 115-140. Durand, R., & Coeurderoy, R. (2001). Age, order of entry, strategic orientation and organizational performance. Journal of Business Venturing, 16(5), 471-494. Dwyer, S. Richard, O., & Shepherd, D. (1998). An exploratory-prospective customer dyad: testing similarity-performance predictions. Journal of Personal Selling and Sales Management, 18(4), 44-71. Dye, R. A. (1993). Auditing standards, legal liability, and auditor wealth. Journal of political Economy, 101(5), 887-914. Ebrahim, A. (2007). Earnings management and board activity: an additional evidence. Review of Accounting and Finance, 6(1), 42-58. Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of management review, 14(1), 57-74. El Mehdi, I. K. (2007). Empirical evidence on corporate governance and corporate performance in Tunisia. Corporate Governance: An International Review, 15(6), 1429-1441. Evans, D. S. (1987a). The relationships between firm growth, size and age: Estimates for 100 manufacturing industries. Journal of Industrial Economics, 35(A), 567-581. Evans, D. S. (1987b). Tests of alternative theories of firm growth. Journal of Political Economy, 95(A), 657-674. Ezzine, H. (2012) A cross Saudi firm analysis of the impact of corporate governance on the stock price performance during the recent financial crisis. SABIC Chair for IFMS. Fairchild, L., & Li, J. (2005). Director quality and firm performance. Financial Review, 40(2), 257-279. Falgi, K. I. (2009). Corporate governance in Saudi Arabia: a stakeholder perspective (Doctoral dissertation, University of Dundee). Fallatah, Y., & Dickins, D. (2012). Corporate governance and firm performance and value in Saudi Arabia. African Journal of Business Management, 6(36), 10025-10034. Fama, E. F. (1980). Agency Problems and the Theory of the Firm. The Journal of Political Economy, 88(2), 288-307. Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of law and economics, 26(2), 301-325. Fan, J. P., Wong, T. J., & Zhang, T. (2007). Politically connected CEOs, corporate governance, and Post-IPO performance of China's newly partially privatized firms. Journal of financial economics, 84(2), 330-357. Farber, D. B., 2005, Restoring trust after fraud: does corporate governance matter? The Accounting Review, 80, 539–561. FCCG (2000). Malaysian code of corporate governance (2000), Ministry of Finance (Malaysia). Federal Research Division. (1993) Saudi Arabia: A Country Study. Kessinger publishing. Fee, C. E., & Hadlock, C. J. (2003). Raids, rewards, and reputations in the market for managerial talent. Review of Financial Studies, 16(4), 1315-1357. Feng, F., Sun, Q., & Tong, W. H. (2004). Do government-linked companies underperform? Journal of Banking & Finance, 28(10), 2461-2492. Ferreira, M. A., & Matos, P. (2008). The colours of investors’ money: The role of institutional investors around the world. Journal of Financial Economics, 88(3), 499-533. Ferrer, R. C., Banderlipe, I. I., & Mc Reynald, S. (2012). The influence of corporate board characteristics on firm performance of publicly listed property companies in the Philippines. Academy of Accounting and Financial Studies Journal, 16(4), 123-142. Ferris, S. P., Jagannathan, M., & Pritchard, A. C. (2003). Too busy to mind the business? Monitoring by directors with multiple board appointments. The Journal of Finance, 58(3), 1087-1112. Fich, E. M., & Shivdasani, A. (2006). Are busy boards effective monitors? The Journal of Finance, 61(2), 689-724. Finegold, D., Benson, G. S., & Hecht, D. (2007). Corporate boards and company performance: review of research in light of recent reforms. Corporate Governance: An International Review, 15(5), 865-878. Fosberg, R. H., & Nelson, M. R. (1999). Leadership structure and business performance. International Review of Financial Analysis, 8(1), 83-96. Francis, J. R., & Wilson, E. R. (1988). Auditor changes: A joint test of theories relating to agency costs and auditor differentiation. Accounting Review, 663-682. Freeman, R.E. (1984) “Strategic Management: A Stakeholder Approach” Pitman Publishing Inc. Massachusetts. Furtado, E. P., & Karan, V. (1990). Causes, consequences, and shareholder wealth effects of management turnover: A review of the empirical evidence. Financial Management, 60-75. Gao, S. (1996). China’s Economic Reform London, U.K.: Macmillan. Geroski, P. A. (1995). What do we know about entry? International Journal of Industrial Organization, 13(4), 421-440. Ghauri, P., & Gronhaugh, K. (2002). Research methods in business studies: A practical guide (2nd ed.). Harlow: Financial Times Prentice Hall. Ghazali, N. A. M. (2010). Ownership structure, corporate governance and corporate performance in Malaysia. International Journal of Commerce and Management, 20(2), 109-119. Ghosh, A. (2001). Does operating performance really improve following corporate acquisitions? Journal of corporate finance, 7(2), 151-178. Gladstein, D. G. (1984). Groups in Context: A Model of Task Group Effectiveness. Administrative Science Quarterly, 29(4), 499-517. Goddard, A. R., & Masters, C. (2000). Audit committees, Cadbury Code and audit fees: an empirical analysis of UK companies. Managerial Auditing Journal, 15(7), 358-371. Gompers, P., Ishii, J., & Metrick, A. (2003). Corporate governance and equity prices. The Quarterly Journal of Economics, 118(1), 107-156. Gonenc, H., & Aybar, C. B. (2006). Financial crisis and firm performance: empirical evidence from Turkey. Corporate Governance: An International Review, 14(4), 297-311. Goodstein, J., Gautam, K., & Boeker, W. (1994). The effects of board size and diversity on strategic change. Strategic management journal, 15(3), 241-250. Greene, W. H. (2003). Econometric Analysis (5th ed.). New Jersey: Prentice Hall. Greenbury Report. (1995). Directors’ Remuneration; Report of a Study Group Chaired by Sir Richard Greenbury, London. Gee Publisheng. Grossman, S. J., & Hart, O. D. (1982). Corporate financial structure and managerial incentives. In The economics of information and uncertainty. University of Chicago Press, 107-140. Gujarati, N. D., & Porter, C. P. (2012). Basic Econometrics (5th ed.). McGraw Hill. Gulf Base. (2009). GCC economic overview. Retrieved September, 2009, from http://www.gulfbase.com/ Site/Interface/TheGCC/gccoverview.html. Habbash, M., (2010). The Effectiveness of Corporate Governance and External Audit on constraining Earnings Management Practices in The UK. Unpublished PhD. Durham University, Business School. Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (2006). Multivariate data analysis (6th ed.). New Jersey: Prentice Hall. Hamdan, A., Al-Hayale, T., & Aboagela, E. (2012). The impact of audit committee characteristics on accounting conservatism: additional evidence from Jordan. Journal of King Saud University, Riyadh, Saudi Arabia, 23(2). Hamilton, L. C. (2003). Statistics with Stata: Update for Version 7, Belmont: Duxbury Press. Hampel Report. London Stock Exchange (United Kingdom). (1998). Committee on Corporate Governance final report. London Stock Exchange (United Kingdom):Gee Publishing Ltd. Han, K. C., Lee, S. H., & Suk, D. Y. (1999). Ownership structure and firm performance: international evidence. Multinational Business Review, 7, 92-97. Haniffa, R. M., & Cooke, T. E. (2002). Culture, corporate governance and disclosure in Malaysian corporations. Abacus, 38(3), 317-349. Haniffa, R., & Hudaib, M. (2006). Corporate governance structure and performance of Malaysian listed companies. Journal of Business Finance and Accounting, 33(7‐8), 1034-1062. Hansmann, H., & Kraakman, R. (2000). The End of History for Corporate Law, Geo. LJ, 89, 439-468. Harris, M., & Raviv, A. (1991). The theory of capital structure. Journal of Finance, 46(1), 297-355. Hart, O. (1995). Corporate governance: some theory and implications. The economic journal, 105(430), 678-689. Haunschild, P. R., & Beckman, C. M. (1998). When do interlocks matter?: Alternate sources of information and interlock influence. Administrative Science Quarterly, 815-844. Healy, P., & Lys, T. (1987). Auditor changes following Big Eight mergers with non-Big Eight audit firms. Journal of Accounting and Public Policy, 5(4), 251-265. Helmich, D. (1977). Executive succession in the corporate organization: A current integration. The Academy of Management Review, 2(2), 252-266. Henry, D. (2005). Directors’ recommendations in takeovers: An agency and governance analysis. Journal of business finance & accounting, 32(1‐2), 129-159. Hermalin, B. E., & Weisbach, M. S. (1988). The determinants of board composition. The RAND Journal of Economics, 589-606. Hermalin, B. E., & Weisbach, M. S. (1991). The effects of board composition and direct incentives on firm performance. Financial Management, 20(4), 101-112. Higgs, D. (2003). Review of the role and effectiveness of non-executive directors. Stationery Office, London:DTI, 1-120. Hill, C. W., & Snell, S. A. (1988). External control, corporate strategy, and firm performance in research‐intensive industries. Strategic Management Journal, 9(6), 577-590. Hillman, A. J., & Dalziel, T. (2003). Boards of directors and firm performance: Integrating agency and resource dependence perspectives. Academy of Management Review, 28(3), 383-396. Holmstrom, B., & Kaplan, S. N. (2001). Corporate Governance and Merger Activity in the US: Making Sense of the 1980s and 1990s (No. w8220). National Bureau of Economic Research. Holthausen, R. W., & Verrecchia, R. E. (1990). The effect of informedness and consensus on price and volume behavior. Accounting Review, 191-208. Hovey, M., Li, L., & Naughton, T. (2003). The relationship between valuation and ownership of listed firms in China. Corporate Governance: An International Review, 11(2), 112-122. Huang, H. H., Chan, M. L., Huang, I., & Chang, C. H. (2011). Stock price volatility and overreaction in a political crisis: The effects of corporate governance and performance. Pacific-Basin Finance Journal, 19(1), 1-20. Hurdle, G. J. (1974). Leverage, risk, market structure and profitability. The Review of Economics and Statistics, 56(4), 478-485. IFRSs.(2011). Available at: http://www.ifrs.org/Use+around+the +world/Use+around+the+world.htm. IFRSs.(2013). Available at :http://www.ifrs.org/Use+around+the +world/Use+around+the+world.htm. INSEAD, The Business School for the World. (2010). Governance in the Gulf: In search of best practice and a common review. INSEAD Governance Meeting with support of The Abu Dhabi Center for Corporate Governance (ADCCG) and The Hawkamah, Institute for Corporate Governance. Available at http://www.insead.edu/facultyresear ch/.../governance.../. Ishak, Z., & Napier, C. (2006). Expropriation of minority interests and corporate diversification in Malaysia. Asian Academy of Management Journal of Accounting and Finance, 2(1), 85-113. Iskandar, M. R.T., and Saleh, N. (2009). Audit Committee Characteristics in Financially Distressed and Non-distressed companies. Managerial Auditing Journal, 24(7), 624-638. Iyengar, R. J., & Zampelli, E. M. (2009). Self‐selection, endogeneity, and the relationship between CEO duality and firm performance. Strategic Management Journal, 30(10), 1092-1112. Jackling, B., & Johl, S. (2009). Board structure and firm performance: Evidence from India's top companies. Corporate Governance: An International Review, 17(4), 492-509. Jaggi, B., Leung, S., & Gul, F. (2009). Family control, board independence and earnings management: Evidence based on Hong Kong firms. Journal of Accounting and Public Policy, 28(4), 281-300. Jansen, M. C. (1993). The modem industrial revolution, exit and the failure of internal control system. Journal of Finance, 48(3), 831-880. Jarrell, G., & Peltzman, S. (1985). The impact of product recalls on the wealth of sellers. The Journal of Political Economy, 93(3), 512-536. Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance and takeovers. The American Economic Review, 76(2), 323-329. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360. Johannisson, B., & Huse, M. (2000). Recruiting outside board members in the small family business: an ideological challenge. Entrepreneurship & Regional Development, 12(4), 353-378. Joher, Ali, Shamsher, Annuar & Ariff. (2000). Auditor switch decision of Malaysian listed firms: Tests of determinants and wealth effect. Pertanika Journal of Social Sciences & Humanities, 8(2), 77-90. Joher, H., Ali, M., Mohd Ramidili, S., & Md Nassir, A. (2000). Auditor Switch Decision of Malaysian Listed Finns: Tests of Determinants and Wealth Effect. Pertanika Journal of Social Sciences & Humanities, 8(2), 77-90. John, K., & Senbet, L. W. (1998). Corporate governance and board effectiveness. Journal of Banking & Finance, 22(4), 371-403. Johnson, J. L., Daily, C. M., & Ellstrand, A. E. (1996). Boards of directors: A review and research agenda. Journal of Management, 22(3), 409-438. Johnson, S. A., Moorman, T. C., & Sorescu, S. (2009). A re-examination of corporate governance and equity prices. Review of Financial Studies, 22(11), 4753-4786. Johnson, S., Boone, P., Breach, A., & Friedman, E. (2000). Corporate governance in the Asian financial crisis. Journal of financial Economics, 58(1), 141-186. Judge, W. Q., & Zeithaml, C. P. (1992). Institutional and strategic choice perspectives on board involvement in the strategic decision process. Academy of management journal, 35(4), 766-794. Juran, J.M., Gryna, F.M., & Bingham, R. (1975). Quality Control Textbook. 3rd edition, McGraw-Hill, New York. Kaempfer, W. H., & Lowenberg, A. D. (1988). The theory of international economic sanctions: A public choice approach. The American Economic Review, 78(4), 786-793. Kalbers, L. P., & Fogarty, T. J. (1993). Audit committee effectiveness-an empirical-Investigation of the contribution of power. Auditing-a Journal of Practice & Theory, 12(1), 24-49. Kane, G. D., & Velury, U. (2004). The role of institutional ownership in the market for auditing services: an empirical investigation. Journal of Business Research, 57(9), 976-983. Kang, E., & Zardkoohi, A. (2005). Board leadership structure and firm performance. Corporate Governance: An International Review, 13(6), 785-799. Karamanou, I., & Vafeas, N. (2005). The association between corporate boards, audit committees, and management earnings forecasts: An empirical analysis. Journal of Accounting research, 43(3), 453-486. Karim, A. K. M., & T. Van Zijl, T. (2008). Role of corporate governance in influencing auditor choice in emerging audit services market. Victoria University of Wellington, Working Paper. Karpoff, J. M., & Lott Jr, J. R. (1999). On the determinants and importance of punitive damage awards. JL & Econ., 42, 52. Karpoff, J. M., Lee, D. S., & Martin, G. S. (2004). The cost of cooking the books. Working Paper niversity of Washington, Texas A & M niversity. Karpoff, J. M., Lee, D. S., & Vendrzyk, V. P. (1999). Defense procurement fraud, penalties, and contractor influence. Journal of Political Economy, 107(4), 809-842. Karpoff, J. M., Lott, J. R., & Rankine, G. (1999). Environmental violations, legal penalties, and reputation costs. University of Chicago, Law School. Keenan, J. (2004). Corporate governance in UK/USA boardrooms. Corporate governance: an international review, 12(2), 172-176. Kennedy, V. A., & Limmack, R. J. (1996). Takeover activity, CEO turnover, and the market for corporate control. Journal of Business Finance and Accounting, 23(2), 267-285. Kent, P., & Stewart, J. (2008). Corporate governance and disclosures on the transition to International Financial Reporting Standards. Accounting and Finance, 48(4), 649-671. Kent, P., Routledge, J., & Stewart, J. (2010). Innate and discretionary accruals quality and corporate governance. Accounting & Finance, 50(1), 171-195. Kervin, B. (1999). Methods for business research. (2nded.). New York: HarperCollins. Kesner, I. F. (1988). Directors' characteristics and committee membership: An investigation of type, occupation, tenure, and gender. Academy of Management Journal, 31(1), 66-84. Khanna, T., & Palepu, K. (2000). Is group affiliation profitable in emerging markets? An analysis of diversified Indian business groups. The Journal of Finance, 55(2), 867-891. Kiel, G. C., & Nicholson, G. J. (2003). Board composition and corporate performance: how the Australian experience informs contrasting theories of corporate governance. Corporate Governance: An International Review, 11(3), 189-205. Kiger, J.E., & Scheiner, J.H. (1997). Auditing (2nd ed.). Boston, M.A: Houghton Mifflin Company. Kim, B., Jung, K., & Kim, I. J. (2005). Internal funds allocation and the ownership structure: Evidence from Korean business groups. Review of quantitative finance and accounting, 25(1), 33-53. Kimberly, J. R., & Evanisko, M. J. (1981). Organizational innovation: The influence of individual, organizational, and contextual factors on hospital adoption of technological and administrative innovations. Academy of management journal, 24(4), 689-713. Klapper, L. F., & Love, I. (2004). Corporate governance, investor protection, and performance in emerging markets. Journal of Corporate Finance, 10(5), 703-728. Klein, A. (1998). Firm Performance and Board Committee Structure 1. The Journal of Law and Economics, 41(1), 275-304. Klein, A. (2002). Audit committee, board of director characteristics, and earnings management. Journal of accounting and economics, 33(3), 375-400. Klein, B., & Leffler, K. B. (1981). The role of market forces in assuring contractual performance. The Journal of Political Economy, 615-641. Klein, P., Shapiro, D., & Young, J. (2005). Corporate governance, family ownership and firm value: The Canadian evidence. Corporate Governance: An International Review, 13(6), 769-784. Knapp, M. (1991). Factors that audit committee members use as surrogates for audit quality. Auditing: A Journal of Practice and Theory, 10(1), 35-52. Koontz, H. (1967). The board of directors and effective management. New York: McGraw-Hill. Kota, H. B., & Tomar, S. (2010). Corporate governance practices in Indian firms. Journal of Management & Organization, 16(2), 266-279. Kren, L., & Kerr, J. L. (1993). The effect of behavior monitoring and uncertainty in the use of performance contingent compensation. Accounting and Business Research, 23(9), 159-168. Krishnan, G., & Visvanathan, G. (2009). Do auditors price audit committee's expertise? The case of accounting versus nonaccounting financial experts. Journal of Accounting, Auditing & Finance, 24(1), 115-144. Krishnan, J. (2005). Audit committee quality and internal control: An empirical analysis. The accounting review, 80(2), 649-675. Kumar, J. (2004). Does ownership structure influence firm value? Evidence from India. The Journal of Entrepreneurial Finance and Business Ventures, 9(2), 61-93. Kumar, R., Lamb, W. B., & Wokutch, R. E. (2002). The End of South African Sanctions, Institutional Ownership, and the Stock Price Performance of Boycotted Firms Evidence on the Impact of Social/Ethical Investing. Business and society, 41(2), 133-165. La Porta de Silanes, F., La Porta, R., Shleifer, A., & Vishny, R. (1998). Law and finance. Journal of Political Economy, 106(2), 1113-1155. La Porta, R., Lopez‐De‐Silanes, F., & Shleifer, A. (1999). Corporate ownership around the world. The journal of finance, 54(2), 471-517. Laing, D., & Weir, C. M. (1999). Governance structures, size and corporate performance in UK firms. Management Decision, 37(5), 457-464. Lang, M. H., Lins, K. V., & Miller, D. P. (2003). ADRs, analysts, and accuracy: Does cross listing in the United States improve a firm's information environment and increase market value? Journal of Accounting Research, 41(2), 317-345. Lang, M. H., Lins, K. V., & Miller, D. P. (2004). Concentrated control, analyst following, and valuation: Do analysts matter most when investors are protected least? Journal of Accounting Research, 42(3), 589-623. Latif, R. A., Kamardin, H., Mohd, K. N. T., & Adam, N. C. (2013). Multiple Directorships, Board Characteristics and Firm Performance in Malaysia. Management, 3(2), 105-111. Lee, H. Y., Mande, V., & Ortman, R. (2004). The effect of audit committee and board of director independence on auditor resignation. Auditing: A Journal of Practice and Theory, 23(2), 131-146. Lee, J. (2006). Family firm performance: Further evidence. Family Business Review, 19(2), 103-114. Leech, D., & Leahy, J. (1991). Ownership structure, control type classifications and the performance of large British companies. Economic Journal, 101(409), 1418-1437. Retrieved May 12, 2008, from Business Source Complete database. Lehmann, E., Warning, S., & Weigand, J. (2004). Governance structures, multidimensional efficiency and firm profitability. Journal of Management & Governance, 8(3), 279-304. Lemmon, L. M., & Lins, K. V. (2003). Corporate structure, corporate governance and firm value: Evidence from the East Asian financial crisis. Journal of Finance, 58(A), 1445-1468. Lennox, C. (1999a). Are large auditors more accurate than small auditors?. Accounting and business research, 29(3), 217-227. Lennox, C. S. (1999b). Audit quality and auditor size: An evaluation of reputation and deep pockets hypotheses. Journal of Business Finance & Accounting, 26(7‐8), 779-805. Lennox, C. S., & Park, C. W. (2007). Audit Firm Appointments, Audit Firm Alumni, and Audit Committee Independence. Contemporary Accounting Research, 24(1), 235-258. Letza, S., Sun, X., & Kirkbride, J. (2004). Shareholding versus stakeholding: a critical review of corporate governance. Corporate Governance: An International Review, 12(3), 242-262. Levrau, A., & Van den Berghe, L. A. A. (2007). Corporate governance and Board Effectiveness: beyond formalism. ICFAI Journal of Corporate Governance, 6(4), 58-85. Levy, P. I. (1999). Sanctions on South Africa: What did they do? The American Economic Review, 89(2), 415-420. Li, M., & Simerly, R. L. (1998). The moderating effect of environmental dynamism on the ownership and performance relationship. Strategic Management Journal, 19(2), 169-179. Lin, J. W., Li, J. F., & Yang, J. S. (2006). The effect of audit committee performance on earnings quality. Managerial Auditing Journal, 21(9), 921-933. Linck, J. S., Netter, J. M., & Yang, T. (2009). The effects and unintended consequences of the Sarbanes-Oxley Act on the supply and demand for directors. Review of Financial Studies, 22(8), 3287-3328. Lipton, M., & Lorsch, J. W. (1992). A modest proposal for improved corporate governance. The Business Lawyer, 48, 59-77. MacAvoy, P. W., & Millstein, I. M. (1999). The active board of directors and its effect on the performance of the large publicly traded corporation. Journal of Applied Corporate Finance, 11(4), 8-20. Macdonald Commission (1988). Report of the Commission to Study the Public's Expectations of Audits. Canada, The Canadian Institute of Chartered Accountants. Mace, M. (1986). Directors: Myth and Reality (Harvard Business School Press, Boston, MA). Majlis Ash-Shura. (2014) http://www.shura.gov.sa/wps/wcm/connect/ShuraEn/ internet/Home/. Majlish Ash-Shura. (2013). Is available online at http://www.shura.gov.sa/wps/wcm/connect/ShuraEn/internet/home/. Majumdar, S. K., & Chhibber, P. (1999). Capital structure and performance: Evidence from a transition economy on an aspect of corporate governance. Public Choice, 98(3-4), 287-305. Mak, Y. T., & Li, Y. (2001). Determinants of corporate ownership and board structure: evidence from Singapore. Journal of Corporate Finance, 7(3), 235-256. Malaysia Securities Commission. (1993). Malaysian code of corporate governance. Mallin, C. A. (2007). Corporate governance. Oxford University Press. Martin, K. J., & McConnell, J. J. (1991). Corporate performance, corporate takeovers, and management turnover. The Journal of Finance, 46(2), 671-687. Masulis, R. W., Wang, C., & Xie, F. (2007). Corporate governance and acquirer returns. The Journal of Finance, 62(4), 1851-1889. Mat Nor, F., & Sulong, Z. (2007). The interaction effect of ownership structure and board governance on dividends: Evidence from Malaysian listed firms. Capital market review, 15(1and2), 73-101. Maug, E. (1998). Large Shareholders as Monitors: Is There a Trade‐Off between Liquidity and Control?. The Journal of Finance, 53(1), 65-98. Maury, B. (2006). Family ownership and firm performance: Empirical evidence from Western European corporations. Journal of Corporate Finance, 12(2), 321-341. McConaughy, D. L., Walker, M. C, Henderson, G. V., & Mishra, C. S. (1998). Founding family controlled firms: Efficiency and value. Review of Financial Economics, 7(1), 1-19. McConnell, J. J., & Servaes, H. (1990). Additional evidence on equity ownership and corporate value. Journal of Financial economics, 27(2), 595-612. McKinsey & Institutional Investors Inc. (2003). McKinsey/KIOD survey on corporate governance January, www.mckinsey.com/clientservice/organiza tionleadership/service/corpgovernance/pdf/cg_ survey. Mclntosh, A. R., & Gonzalez‐Lima, F. (1994). Structural equation modelling and its application to network analysis in functional brain imaging. Human Brain Mapping, 2(1‐2), 2-22. McMullen, D. A. (1996). Audit committee performance: An investigation of the consequences associated with audit committees. Auditing-A Journal of Practice & Theory, 15(1), 87-103. McWilliams, A., & Siegel, D. (1997). Event studies in management research: Theoretical and empirical issues. Academy of management journal, 40(3), 626-657. Menon, K., & Williams, D. D. (1991). Auditor credibility and initial public offerings. Accounting Review, 313-332. Miller, D. P. (1999). The market reaction to international cross-listings: evidence from Depositary Receipts. Journal of Financial Economics, 51, 103-123. Millstein, I. M., & MacAvoy, P. W. (1998). The active board of directors and performance of the large publicly traded corporation. Columbia Law Review, 98(21), 1283-1322. Ming, T. C., & Gee, C. S. (2008). The influence of ownership structure on the corporate performance of Malaysian public listed companies. ASEAN Economic Bulletin, 25(2), 195-208. Ministry of Commerce (1954). Launching the Saudi Ministry of Commerce: The Royal Decree No. 10/22/5/5703 on 11/07/1373Hijri (1954). The Ministry of Commerce in Saudi Arabia; the Arabic version is available online at, http://www.mci.gov.sa/About Ministry/Pages/default.aspx. Ministry of Commerce and Industry. (2006). Available at: http//commerce.gov.sa/active/wto. asp. In 15.12.2006. Ministry of Commerce Industry (1965), "The Companies Law (Regulations for Companies): The Royal Decree No. M/6 on 22/3/1385H(1965)." The Ministry of Commerce Industry in Saudi Arabia; the Arabic version is available online at, http://www.commerce.gov.sa/ circular/l 0-1 .asp#2. Ministry of Commerce Industry (2014). http://www.mci.gov.sa/AboutMini stry /Pages/HistoricalOverview.aspx & http://www.mci.gov.sa/AboutMinistry/Pages/ MinistryFunctions.aspx. Ministry of Economy and Planning. (2014) Available at: http://mep.gov.sa/index.jsp?. Ministry of Finance. (1950). Zakat and Tax Regulations: The Royal Decree No.393 on 6/8/1370(13/5/1951). The Ministry of Finance in Saudi Arabia is available online at http://www.mof.gov.sa/Arabic/Pages/Home.aspx. Mishra, C. S., Randoy, T., & Jenssen, J. I. (2001). The effect of family influence on firm value and corporate governance. Journal of International Financial Management and Accounting, 12(3), 235-259. Mitchell, M. L., & Maloney, M. T. (1989). Crisis in the Cockpit-The Role of Market Forces in Promoting Air Travel Safety. JL & Econ., 32, 329. Mitton, T. (2002). A cross-firm analysis of the impact of corporate governance on the East Asian financial crisis. Journal of financial economics, 64(2), 215-241. Monks, R. A. & Minow, N. (2004). Corporate governance Malden, MA, Blackwell Publishing. Monks, R. A. G. & Nell, M. N. (2008). Corporate governance. Chichester, UK: Wiley, 4th edn. Morck, R., Shleifer, A., & Vishny, R. W. (1988). Management ownership and market valuation: An empirical analysis. Journal of financial economics, 20, 293-315. Mustapha, M., & Ahmad, A. C. (2011). Agency theory and managerial ownership: evidence from Malaysia. Managerial Auditing Journal, 26(5), 419-436. Muth, M., & Donaldson, L. (1998). Stewardship theory and board structure: a contingency approach. Corporate Governance: An International Review, 6(1), 5-28.

Corporate governance and firm performance: A study of public listed companies in the Kingdom of Saudi Arabia

Similar Items