Title: The top management team characteristics and financial performance: the role of remuneration - further analysis: evidence from Saudi Arabia and Oman

Authors: Ebrahim Mohammed Al-Matari

Addresses: Department of Accounting, College of Business, Jouf University, Sakaka 2014, Saudi Arabia

Abstract: The discussion around the top management team (TMT) as to whether or not it affects the financial performance (FP) of the firm is ongoing in literature albeit the findings are mixed. Hence, this study is motivated by the need to examine the TMT-FP relationship in the context of listed firms in Oman and Saudi Arabia. The study also aims to test remuneration in light of its moderating effect on the above relationship. Data was collected from the companies' annual report for the years from 2014 to 2019, and was analysed with the help of ordinary least squares (OLS). The findings showed that TMT experience in accounting and finance positively and significantly. Remuneration was also found to have a moderating positive effect on the relationship between professional certificate of TMT and FP. The findings further indicated that remuneration positively and significantly moderated the relationship between TMT foreign member and FP. Further test found TMTSCORE positively associated with performance.

Keywords: top management team; TMT; agency theory; Saudi Arabia; Oman; upper echelons theory; panel data; financial performance; further analysis.

DOI: 10.1504/IJBIS.2025.145960

International Journal of Business Information Systems, 2025 Vol.49 No.1, pp.113 - 141

Received: 25 Jan 2021
Accepted: 21 Sep 2021
Published online: 01 May 2025 *

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