The Association between Board Size, Independence and Firm Performance: Evidence from Saudi Arabia

The Association between Board Size, Independence and Firm Performance: Evidence from Saudi Arabia

Mohammed Alshetwi

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Qassim University

The Association between Board Size, Independence and Firm Performance: Evidence from Saudi Arabia

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Abstract

This study examines the association between board size, independence and firm performance in Saudi nonfinancial listed firms. The sample consists of 329 firms during the period 2013 to 2015. Both between-and within-firms variation analysis are used to test the hypotheses. The study finds that neither board independence nor board size is linked to firm performance, but some evidence (from additional tests) supports the argument that nonexecutive members of the board of directors may lack real independence; in this case they would be both less effective and more costly for firms. Together, these findings are consistent with the view that business structure in Saudi Arabia is dominated by a tribal system that gives more attention to personal relationships instead of skill and competency in selecting member of the board of directors.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Mohammed Alshetwi. 2017. \u201cThe Association between Board Size, Independence and Firm Performance: Evidence from Saudi Arabia\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 17 (GJMBR Volume 17 Issue D1): .

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GJMBR Volume 17 Issue D1
Pg. 17- 28

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

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Classification

GJMBR-D Classification: JEL Code: L20

Submission ReceivedDecember 15, 2016
Peer Review Double Blind
Handling Editor
Accepted January 5, 2017
Published January 15, 2017

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v1.2

Issue date

March 23, 2017

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Article Matrices

Total Score: 121

Country: Saudi Arabia

Subject: Global Journal of Management and Business Research - D: Accounting & Auditing

Authors: Mohammed Alshetwi (PhD/Dr. count: 0)

View Count (all-time): 174

Total Views (Real + Logic): 3652

Total Downloads (simulated): 1872

Publish Date: 2017 03, Thu

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Total Views: 3652

Total Downloads: 1872

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