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Do the Board Characteristics influence the Firm Performance? An Experience with the Capital-Intensive Industries Listed in the Saudi Stock Exchange (TADAWUL)

Author

Listed:
  • Amal Salem Abdullah AlSaif
  • Sarah Sulaiman Saad AlRuwaishd
  • Durga Prasad Samontaray

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).

Suggested Citation

  • Amal Salem Abdullah AlSaif & Sarah Sulaiman Saad AlRuwaishd & Durga Prasad Samontaray, 2022. "Do the Board Characteristics influence the Firm Performance? An Experience with the Capital-Intensive Industries Listed in the Saudi Stock Exchange (TADAWUL)," International Business Research, Canadian Center of Science and Education, vol. 15(9), pages 1-62, September.
    • Handle: RePEc:ibn:ibrjnl:v:15:y:2022:i:9:p:62
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    References listed on IDEAS

    as
    1. Muhammad Akram Naseem & Sun Xiaoming & Sulman Riaz & Ramiz Ur Rehman, 2017. "Board Attributes and Financial Performance: The Evidence from an Emerging Economy," Journal of Developing Areas, Tennessee State University, College of Business, vol. 51(3), pages 281-297, July-Sept.
    2. Pathan, Shams & Faff, Robert, 2013. "Does board structure in banks really affect their performance?," Journal of Banking & Finance, Elsevier, vol. 37(5), pages 1573-1589.
    3. Jean Tirole, 2006. "The Theory of Corporate Finance," Post-Print hal-00173191, HAL.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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