Corporate governance and financial performance : an empirical study on cement companies listed in Saudi stock market

Abstract EN

This paper investigates the impact of corporate governance on financial performance by cement firms listed in Saudi stock market during the period of 2012- 2016.

Many studies have examined the association between corporate governance mechanisms, ownership structure and firm performance, the most of them conducted in the developed countries, produced diverse findings, influenced by the nature of the dominant governance system for each country.

Using the Least Ordinary Square (OLS), the results of the current study revealed that managerial ownership and firm size have a positive and significant impact on firm performance.

However, board independence, board size, board meeting and audit type have no effect on the financial performance.