Title: Does effectiveness of internal corporate governance and top management influence corporate performance? The role of ownership concentration

Authors: Ebrahim Mohammed Al-Matari; Talal Fawzi Alruwaili; Mahfoudh Hussein Mgammal; Nasareldeen Hamed Ahmed Alnor; Mohammed A. Al-Bukhrani

Addresses: Department of Accounting, College of Business, Jouf University, Saudi Arabia; Faculty of Commerce and Economics, Amran University, Amran, Yemen ' Department of Accounting, College of Business, Jouf University, Kingdom of Saudi Arabia ' Department of Accounting, College of Business, Jouf University, Saudi Arabia; Faculty of Commerce and Economics, Amran University, Amran, Yemen ' Department of Accounting, College of Business, Jouf University, Kingdom of Saudi Arabia ' Accounting Department, Faculty of Administrative Sciences, Albydha University, Albaydha, Yemen

Abstract: This study investigates the relationship between the efficacy of internal corporate governance and the performance of top management and the corporation. In addition, the current study investigates the moderating influence of ownership concentration on the link between the efficacy of internal corporate governance, top management, and corporate performance. This analysis included listed Saudi Arabian firms between 2014 and 2018. Moreover, this study utilised the OLS regression to examine the direct and indirect link. The findings of this study indicate that the efficacy of internal corporate governance and ownership concentration have a positive and statistically significant relationship with corporate performance (ROA). Furthermore, this study demonstrates that internal corporate governance effectiveness has a negative and statistically significant relationship with business performance (TQ). In addition, this research demonstrates that ownership concentration has a favourable correlation with corporate performance. This study is the first to examine how ownership concentration affects the relationship between efficacy of top management, corporate governance, and corporate performance. It demonstrates the importance of taking the ownership structure into account when assessing the efficiency of top management and corporate governance. In addition, the paper provides a comprehensive synthesis of top management and internal governance procedures.

Keywords: internal corporate governance; ownership concentration; top management; corporate performance; Saudi Arabia.

DOI: 10.1504/IJMFA.2024.141711

International Journal of Managerial and Financial Accounting, 2024 Vol.16 No.4, pp.353 - 379

Received: 12 Jun 2022
Accepted: 14 Feb 2023
Published online: 01 Oct 2024 *

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