- Title
- Factors that affect corporate governance practices in Saudi Arabian listed banks
- Creator
- Al-Sahafi, Ashraf; Rodrigs, Marcus; Barnes, Lisa
- Relation
- Journal of Banking and Finance: Law and Practice Vol. 25, Issue 3, p. 137-156
- Relation
- http://www.thomsonreuters.com.au/journal-of-banking-and-finance-law-and-practice-online/productdetail/97176
- Publisher
- Lawbook
- Resource Type
- journal article
- Date
- 2014
- Description
- The global financial crisis has resulted in increased attention to corporate governance practices, especially in one of the most affected sectors: banking. Good corporate governance is a significant issue in the banking sector, which is a major engine of economic growth and contributes to the stability of a country¿s financial market. This article examines the level of compliance with the Corporate Governance Regulations (CGRs) in the Saudi Arabian banking sector and the factors that affect the level of compliance. The annual reports for all listed banks in Saudi Arabia for the years 2006, 2009, and 2012 have been analysed. The results shown in this article demonstrate that the level of compliance with the CGRs in the Saudi Arabian banking sector has improved significantly since 2006. While the level of compliance was very low in 2006 (42%) it has increased considerably to 63% and 78% in 2009 and 2012 respectively. It has been found that the level of compliance is positively affected by board size, audit committee size, banks size and leverage ratio; whereas board independence is associated negatively with the level of compliance.
- Subject
- corporate goverance practices; Saudi Arabia; banking; global financial crisis
- Identifier
- http://hdl.handle.net/1959.13/1298999
- Identifier
- uon:19765
- Identifier
- ISSN:1034-3040
- Language
- eng
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