المستخلص: |
In 2006 the Saudi Capital Market authority issued the Corporate Governance Code which proposed a variety of monitoring mechanisms that should improve corporate Governance. However, the impact of these mechanisms on firm performance is still ambiguous. This study aims to examine the effect of corporate governance mechanisms on the performance of Saudi listed companies. Specifically, the composition, size and leadership style of boards are tested. The analysis is extended to investigate the moderating effect of family ownership. The study uses a sample of 338 large Saudi listed companies. We find that both duality and independence of the board affect a firm’s performance. However, we find that this is not the case in family controlled firms, which suggests that family ownership and corporate governance could be a monitoring substitute for each other.
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