دراسات إقتصادية


Description

"Economic Studies journal is an international specialized, free, and hexagonal journal. Moreover(the first number will publish at the beginning of June and the second one at the beginning of December of each year),. The journal deals with the scientific studies related to economic sciences, commercial sciences and management sciences, in the following languages ​​Arabic, English And French,. In addition to that the journal responds to quality, scientific authenticity.,all the scientific conditions and methodology recognized in academic research. It is also available for reading and downloading on the ASJP portal,It is accepted to submit studies in the issue of the Journal of Economic Studies , all scientific research work that has not been previously published, or has been submitted for publication in another body.

Annonce

استقبال المقالات العلمية

فترة استقبال المقالات العلمية ستبدأ من 2022/02/13 وتتوقف هذه الفترة عند بلوغ العتبة التي تتوافق مع إمكانياتنا في التقييم. مع مراعاة شروط النشر وضرورة احترام القالب الخاص بالمجلة الذي يمكن تحميلهما عبر الصفحة ذاتها.

10-09-2021


21

Volumes

37

Numéros

314

Articles


Corporate governance Effectiveness and Financial Leverage: Empirical Evidence from Saudi Arabia

Alrassas Ahmed, 
2022-02-08

Résumé: This study aims to examine the impact of corporate governance effectiveness on the firms’ financial leverage among Saudi firms. In addition, the study examines the impact of board of director effectiveness and audit committee effectiveness on firms’ leverage. This study employs yearly data of Saudi firms over the period of 2012-2016. The study utilizes Ordinary Least Square (OLS) model to support the hypothesis of the study. The study’s findings show that Saudi firms with an effective corporate governance are having negative level of leverage in their capital structure. Further, the study finds that firms with effective board of director and less effective audit committee are having more debts in the capital structure. The findings of the study imply that for Saudi firms, effective corporate governance mitigates the agency problem which reflected by the less debts used by Saudi firms in their capital structure. It also provides evidence that effective board reflect that firms are using less debts, this perhaps due to the good performance that means firms are having more internal sources, this leads to use less leverage. It is also found that once audit committee is more effective, firms are having more financial reporting quality which enhance the creditworthiness of the firms and consequently enable firms to get more borrowings. These findings provide implications to the regulators, firms’ decision makers, creditors, and investors on the importance of corporate governance monitoring mechanisms namely board of directors and audit committee characteristics. This study enriches the literature and offers valuable implications by providing an empirical evidence on the impact of effective corporate governance captured by internal monitoring mechanisms.

Mots clés: Corporate Governance Effectiveness, Board of Directors, Audit committee, Leverage, Saudi Firms.