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Corporate Governance Development and Practices in an Emerging Economy: A Review of Empirical Findings and Literature in Saudi Arabia

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  • Bader Alharbi
  • Abdullah Alharbi

Abstract

Purpose- The aim is to review the literature and present some of the academic contributions researchers have made in the study, development and practice of corporate governance (CG) in Saudi Arabia. Design/Methodology- We conducted a guided words search on electronic databases using “corporate governance in Saudi Arabia” as the search words. The scope of the study was restricted to the needed materials and information contained in refereed journals from 1965 to 2018 and held in the ABI/INFORM Global, Emerald databases and a few other internationally recognized electronic databases. The papers were first sorted into areas of possible CG application. They are finally analyzed and then synthesized. Findings- That six broad areas have been examined in relation to CG structures and development; they include- company financial performance, corporate social responsibilities, earnings management, corporate voluntary disclosures, financial structure and the role of CG in times of financial crisis. The papers are skewed in favour of, CG and company financial performance at the expense of other areas. CG has evolved, even though, the country’s institutional environment may not be too close to those of OECD nations, but the establishment of the new 2006 CG code is a positive addition to the business culture. Nevertheless, there are still other outstanding CG issues identified by scholars and practitioners that are not in conformity with international best CG practices. Research limitations/implications- The study’s analysis was restricted to between 1965 and 2018, and papers from some and not all electronic data bases were used. Originality/value- The paper provides a comprehensive review and analysis CG development and practice in an emerging economy where greater importance is usually attached to informal relationships and other considerations than formal CG mechanisms.

Suggested Citation

  • Bader Alharbi & Abdullah Alharbi, 2023. "Corporate Governance Development and Practices in an Emerging Economy: A Review of Empirical Findings and Literature in Saudi Arabia," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(3), pages 1-11, April.
    • Handle: RePEc:ibn:ijbmjn:v:16:y:2023:i:3:p:11
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    References listed on IDEAS

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    JEL classification:

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

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