Corporate Governance Mechanism and Firm Performance in Saudi Arabia

Abstract

The intention of this study is to examine the relationship of corporate governance mechanism (board size) with firm performance among the health care equipment and services listed firms in Saudi Arabia for the period ranging from 2010 to 2019. The pooled ordinary least square (POLS) regression findings mention that the board size was positively associated with firm performance in both return on assets (ROA) and return on equity (ROE) models. This shows that better governed companies tend to attain better firm performance. This study results mention that in perspective of Saudi Arabia, enforcing a voluntary 'comply or explain' CG regime has, so far, a good effect on firm performance. The results documented by this study are important for market levels, decision makers and the company.