Shehabaddin Al-Dubai | King Faisal University (original) (raw)

Papers by Shehabaddin Al-Dubai

Research paper thumbnail of Examining the relationship between board characteristics and financial risk disclosure: A longitudinal analysis based on agency theory

Corporate Governance and Organizational Behavior Review

The aim of this research is to enhance existing literature pertaining to corporate disclosure thr... more The aim of this research is to enhance existing literature pertaining to corporate disclosure through an investigation of financial risk information that has been reported in annual reports. The study also seeks to determine the extent of disclosure and how it has changed over time. Furthermore, it examines the effects of board busyness, size, independence, and meetings on financial risk disclosure. The content analysis method was used to evaluate the annual reports of 4 energy companies over a 13-year period, resulting in 52 firm-year observations. The study used secondary data sources and focused on companies that were listed between 2009 and 2021. The findings indicate that board size has a positive impact on financial risk disclosure, whereas board independence has a negative impact. However, no significant effects were found for board busyness and board meetings. These results were robust across various estimation techniques. However, the study is limited in that it only consid...

Research paper thumbnail of EXAMINING THE RELATIONSHIP BETWEEN BOARD CHARACTERISTICS AND FINANCIAL RISK DISCLOSURE: A LONGITUDINAL ANALYSIS BASED ON AGENCY THEORY

orporate Governance and Organizational Behavior Review, 2023

The aim of this research is to enhance existing literature pertaining to corporate disclosure thr... more The aim of this research is to enhance existing literature pertaining to corporate disclosure through an investigation of financial risk information that has been reported in annual reports. The study also seeks to determine the extent of disclosure and how it has changed over time. Furthermore, it examines the effects of board busyness, size, independence, and meetings on financial risk disclosure. The content analysis method was used to evaluate the annual reports of 4 energy companies over a 13-year period, resulting in 52 firm-year observations. The study used secondary data sources and focused on companies that were listed between 2009 and 2021. The findings indicate that board size has a positive impact on financial risk disclosure, whereas board independence has a negative impact. However, no significant effects were found for board busyness and board meetings. These results were robust across various estimation techniques. However, the study is limited in that it only considered certain board characteristics, and future research should explore the effects of other board characteristics and incorporate additional committee characteristics.

Research paper thumbnail of TO WHAT EXTENT DOES THE AUDIT COMMITTEE EXPERIENCE AFFECT FINANCIAL RISK DISCLOSURE? NON-LINEAR EVIDENCE FROM SAUDI ARABIA 審計委員會的經驗在多大程度上影響財務風險揭露?來自沙烏地阿 拉伯的非線性證據

Journal of Southwest Jiaotong University, 2023

The audit committee (AC) plays a pivotal role in overseeing financial reporting and holds a posit... more The audit committee (AC) plays a pivotal role in overseeing financial reporting and holds a position of great importance among subcommittees. It is crucial to underscore the significance of this committee in ensuring the accuracy and reliability of financial risk disclosure (FRD). This research study aims to investigate the relationship between the experience of AC members and FRD in Saudi energy companies from 2009 to 2021. The analysis involved several factors, including the size of the AC, the number of meetings held, the expertise of its members, and the extent of overlapping responsibilities. The results obtained from the linear model using fixed effects regression demonstrate that smaller ACs, comprising members with financial or accounting expertise tend to exhibit higher levels of FRD. A non-linear (quadratic) relationship is identified between AC members' experience and FRD. Notably, a critical threshold is observed at 21 companies, beyond which FRD declines. To enhance FRD, companies should limit the appointment of individuals who have served in more than 21 companies and prioritize the inclusion of expert members who have had less involvement in other committees. Our results are robust and confirmed using random effects generalized least squares regression. It is critical to acknowledge that this study has certain limitations that present opportunities for future research endeavors. Future studies should investigate the non-linearity of other variables, explore the implications of non-FRD, and expand the scope of analysis to an international level, encompassing diverse sectors and incorporating additional attributes such as education level and position.

Research paper thumbnail of Do level, field, and place of board members’ Education impact financial risk disclosure? A Saudi Empirical evidence

Research paper thumbnail of Are Family Members Expropriated-Monitoring Shareholders? Non-Linear Evidence from the Saudi Arabia

Jurnal Pengurusan, 2015

As family businesses grow worldwide, the significant role of family shareholders on firm value be... more As family businesses grow worldwide, the significant role of family shareholders on firm value becomes questionable. This study seeks to address this issue and provides new evidence on the non-linearity of family ownership-firm value relationship, based on 375 firm-year observations of 75 public listed companies in Saudi Arabia over five consecutive years (2007-2011). Interestingly, we provided evidence that the behavior of the Saudi families is changeable between expropriation and monitoring during the life of the business depending on the percentage of family ownership. We found sufficient evidence that the turning point occurs at the 28% family ownership. This confirmed the expropriated-monitoring behavior of family shareholders in their businesses. These results were robust with respect to different family definitions and analyses. Our findings suggested that investors should not undervalue Saudi family firms due to family ownership per se. At a certain degree of ownership, the benefits of Saudi family monitoring actually exceed the costs. The results suggested that there may be a need to encourage policy makers in Saudi Arabia to impose the full disclosure of firms' ownership information, including the percentage of ownership and the identity of owners.

Research paper thumbnail of Family Business Definition: A Matter of Concern or a Matter of Convenience?

Corporate Ownership and Control, 2014

This paper attempts to examine the impact of adopting multiple family ownership cut-offs in defin... more This paper attempts to examine the impact of adopting multiple family ownership cut-offs in defining family businesses, family ownership measurements, and conducting different types of analyses. For achieving this goal we have focus on the relationship between family ownership and firm performance (ROA) in the context of emerging market (Saudi Arabia), controlling for firm’s debt, age, size and industry sectors. With three family ownership cut-offs: 5%, 10%, and 20% and two type of analysis (cross-sectional and cross-sectional and time-series data) as well as two types of family ownership measures (ratio and dummy), we fond that the relationship between the two variables is consistent despite of the level of family ownership cut-off, analysis type, and measurement. This indicates that family business definition is not a matter of concern for researchers, but rather a matter of convenience.

Research paper thumbnail of Overview of Family Business in Saudi Arabia

Research paper thumbnail of A Conceptual Framework for the Moderating Effect of Family CEO and Generation on the Family Involvement in Ownership

Research paper thumbnail of Succession in Family Firms: A Review

Research paper thumbnail of Family Involvement in Ownership, Management, and Firm Performance: Moderating and Direct-Effect Models

Asian Social Science, 2014

This study aims to provide an empirical evidence on the moderating effect of family involvement i... more This study aims to provide an empirical evidence on the moderating effect of family involvement in management (family CEO and founder CEO) on the relationship between family ownership and firm's performance. From a sample of 75 public listed companies (375 firm-year observations) in Saudi Arabia, we use a five-year interval (2007-2011) and two firm performance indicators (market to book value (MBV) and return on assets (ROA)) to test five hypotheses. The hypotheses that there is a direct impact of family ownership and founder CEO on ROA and MBV were supported respectively. The hypothetical moderating impact of family CEO and founder CEO have been partially confirmed with MBV. Overall, the findings highlight the importance of occupying CEO positions in family firms by family members, especially the founders for gaining better performance. However, the results are robust when only family firms are examined separately.

Research paper thumbnail of Accountants’ Perceptions on the Adoption of International Financial Reporting Standards in Yemen

Developments in the global capital market have made the adoption of International Financial Repor... more Developments in the global capital market have made the adoption of International Financial Reporting Standard (IFRS) more significant than ever before. The purpose of this study is to examine the accountants’ perception of IFRSs adoption in Yemen. We also seek the accountants’ view on whether Yemen should adopt the IFRSs or not, and on the expected time taken to adopt the accounting standards. We also examine the difference in opinion between academicians and practitioners regarding the adoption of IFRSs. In this regard, this study carries out a survey of 48 Yemeni accounting postgraduate students in Malaysian public universities. We find that a majority of the respondents acknowledge the benefits of adopting IFRSs in Yemeni companies. Moreover, a majority of the respondents (82.9%) agree that Yemeni companies should adopt IFRSs. About 58.6% of respondents expect the period of IFRSs adoption in Yemen to be within three to 10 years, while 41.5% expect it to be more than 10 years. Th...

Research paper thumbnail of Family involvement and firm performance: Evidence from Saudi Arabia

Economies around the world are full of family businesses, the main and significant players in the... more Economies around the world are full of family businesses, the main and significant players in the growth of a nation. Saudi Arabia is no exception. As a result, family firm performance is considered as an important variable in the context of financial and management research. This study investigates the relationship between family involvement in ownership, management, control, and succession, as well as the presence of other blockholders on firm performance. Using longitudinal data from a panel of 38 non-financial Saudi family publiclisted companies (190 firm-year observations) from 2007 to 2011, and employing two different performance indicators (MBV and ROA), this study provides a sharp insight and deep understanding of the family firm characteristics and their influence on firm performance. The results provide strong evidence of the outperformance of family firms. However, when the non-linearity of family ownership is taken into account, the results become different; firm value d...

Research paper thumbnail of Are Family Members Expropriated-Monitoring Shareholders? Non-Linear Evidence from the Saudi Arabia

Jurnal Pengurusan

As family businesses grow worldwide, the significant role of family shareholders on firm value be... more As family businesses grow worldwide, the significant role of family shareholders on firm value becomes questionable. This study seeks to address this issue and provides new evidence on the non-linearity of family ownership-firm value relationship, based on 375 firm-year observations of 75 public listed companies in Saudi Arabia over five consecutive years (2007-2011). Interestingly, we provided evidence that the behavior of the Saudi families is changeable between expropriation and monitoring during the life of the business depending on the percentage of family ownership. We found sufficient evidence that the turning point occurs at the 28% family ownership. This confirmed the expropriated-monitoring behavior of family shareholders in their businesses. These results were robust with respect to different family definitions and analyses. Our findings suggested that investors should not undervalue Saudi family firms due to family ownership per se. At a certain degree of ownership, the benefits of Saudi family monitoring actually exceed the costs. The results suggested that there may be a need to encourage policy makers in Saudi Arabia to impose the full disclosure of firms' ownership information, including the percentage of ownership and the identity of owners.

Research paper thumbnail of Involvement of Board Chairmen in Audit Committees and Earnings Management: Evidence from Malaysia

The Journal of Asian Finance, Economics and Business

This paper investigates the effect of the involvement of the board chairman in the audit committe... more This paper investigates the effect of the involvement of the board chairman in the audit committee (AC) on earnings management (EM). It examines Bursa Malaysia-listed companies with the lowest positive earnings for the years 2013 to 2015. The Modified Jones Model by Kasznik (1999) was used to determine discretionary accruals. An AC that includes its board chairman as an ordinary member is associated with greater discretionary accruals. However, a board chairman who is also the chairman of the AC does not seem to influence discretionary accruals. This paper supports the agency theory and policy-makers’ efforts to prevent board chairmen from sitting on ACs. It is the first study that uses the agency theory to describe the association between the board chairman’s involvement in the both AC and EM. This study alerts policy-makers, stakeholders and researchers to the influence of a board chairman serving on the AC in curbing EM. Furthermore, it provides empirical evidence that the majority of Malaysian companies whose board chairmen are involved in the AC appoint the chairman as an ordinary member of the AC. This indicates that executive directors may affect such actions. Hence, more policies are needed to improve AC independence.

Research paper thumbnail of Does Family Involvement on Board of the Directors Contribute to Firm Profitability? An Empirical Evidence from Saudi Arabia

Literatures view board of the directors as the cornerstone of firm's success. Therefore, family i... more Literatures view board of the directors as the cornerstone of firm's success. Therefore, family involvement on the board and its impact on firm profitability is an issue of interest and need to be addressed. The purpose of this paper lies in the fact that it extracts new empirical evidence from a promising area in the world. The study proceeds with a cross-sectional time-series analysis based on a data of 75 Saudi non-financial public listed firms from 2007-2011(375 firm-year observations) to examine family representing on board of the directors, family chairman, and founder chairman and its impact on firm performance (ROA). The study concludes the outperformance of firms in which family represents heavily on the board. In addition, the results suggest that not all family members are good stewards. Strictly speaking, founder chairman only found to be beneficial to the firm profitability rather than others. However, the results confirmed its robustness against different indicator (EPS) and when family firms only being selected.

Research paper thumbnail of The Role of Other Blockholders: A Conceptual Framework

The European Proceedings of Social and Behavioural Sciences

This is an Open Access article distributed under the terms of the Creative Commons Attribution-No... more This is an Open Access article distributed under the terms of the Creative Commons Attribution-Noncommercial 4.0 Unported License, permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Research paper thumbnail of Overview of Family Business in Saudi Arabia

Research paper thumbnail of The Relationship between Risk Disclosure and Firm Performance: Empirical Evidence from Saudi Arabia

This study aims to examine the moderating effect of risk management disclosure on the relationshi... more This study aims to examine the moderating effect of risk management disclosure on the relationship between risk disclosure and firm performance as an attempt to contribute to the increasing body of literature concerning risk management disclosure by extracting new evidence from a fast-growing economic environment in Saudi Arabia. We used content analysis of cross-sectional data extracted from the audited annual reports of 72 non-financial Saudi listed firms in various non-financial sectors for the year 2018. Research hypotheses have been tested by using two robust statistical models (MM-Estimator Model and Robust Regression Model). The findings showed no evidence that risk disclosure and risk management disclosure matter concerning firm performance measured by the average of earning per share EPS when they are examined individually. However, when the moderating effect of risk management disclosure is considered, the results become significantly positive. These outcomes could explain...

Research paper thumbnail of Family Business Definition A Matter of Concern or A Matter of Convenience

Research paper thumbnail of A CONCEPTUAL FRAMEWORK FOR THE MODERATING EFFECT OF FAMILY CEO AND GENERATION ON THE FAMILY INVOLVEMENT IN OWNERSHIP-FIRM PERFORMANCE RELATIONSHIP

This paper aims to propose a conceptual framework in order to examine the moderating effect of fa... more This paper aims to propose a conceptual framework in order to examine the moderating effect of family CEO and his generation on the family ownership-firm performance relationship. A significant question regarding the topic of study is the effect of family involvement in ownership upon the firm's performance; previous studies provided mixed findings. These inconsistencies have made the link between family ownership and firm performance more complex, which may be affected by a moderator or a mediator. Previous literature recommended that future researchers concentrate mainly on who runs the firm as opposed to who owns it. One explanation for why the results were inconsistent may be related to the lack of understanding of the moderating effect of family CEOs and their generation. From the review of literature, conceptual framework and related hypotheses are developed.

Research paper thumbnail of Examining the relationship between board characteristics and financial risk disclosure: A longitudinal analysis based on agency theory

Corporate Governance and Organizational Behavior Review

The aim of this research is to enhance existing literature pertaining to corporate disclosure thr... more The aim of this research is to enhance existing literature pertaining to corporate disclosure through an investigation of financial risk information that has been reported in annual reports. The study also seeks to determine the extent of disclosure and how it has changed over time. Furthermore, it examines the effects of board busyness, size, independence, and meetings on financial risk disclosure. The content analysis method was used to evaluate the annual reports of 4 energy companies over a 13-year period, resulting in 52 firm-year observations. The study used secondary data sources and focused on companies that were listed between 2009 and 2021. The findings indicate that board size has a positive impact on financial risk disclosure, whereas board independence has a negative impact. However, no significant effects were found for board busyness and board meetings. These results were robust across various estimation techniques. However, the study is limited in that it only consid...

Research paper thumbnail of EXAMINING THE RELATIONSHIP BETWEEN BOARD CHARACTERISTICS AND FINANCIAL RISK DISCLOSURE: A LONGITUDINAL ANALYSIS BASED ON AGENCY THEORY

orporate Governance and Organizational Behavior Review, 2023

The aim of this research is to enhance existing literature pertaining to corporate disclosure thr... more The aim of this research is to enhance existing literature pertaining to corporate disclosure through an investigation of financial risk information that has been reported in annual reports. The study also seeks to determine the extent of disclosure and how it has changed over time. Furthermore, it examines the effects of board busyness, size, independence, and meetings on financial risk disclosure. The content analysis method was used to evaluate the annual reports of 4 energy companies over a 13-year period, resulting in 52 firm-year observations. The study used secondary data sources and focused on companies that were listed between 2009 and 2021. The findings indicate that board size has a positive impact on financial risk disclosure, whereas board independence has a negative impact. However, no significant effects were found for board busyness and board meetings. These results were robust across various estimation techniques. However, the study is limited in that it only considered certain board characteristics, and future research should explore the effects of other board characteristics and incorporate additional committee characteristics.

Research paper thumbnail of TO WHAT EXTENT DOES THE AUDIT COMMITTEE EXPERIENCE AFFECT FINANCIAL RISK DISCLOSURE? NON-LINEAR EVIDENCE FROM SAUDI ARABIA 審計委員會的經驗在多大程度上影響財務風險揭露?來自沙烏地阿 拉伯的非線性證據

Journal of Southwest Jiaotong University, 2023

The audit committee (AC) plays a pivotal role in overseeing financial reporting and holds a posit... more The audit committee (AC) plays a pivotal role in overseeing financial reporting and holds a position of great importance among subcommittees. It is crucial to underscore the significance of this committee in ensuring the accuracy and reliability of financial risk disclosure (FRD). This research study aims to investigate the relationship between the experience of AC members and FRD in Saudi energy companies from 2009 to 2021. The analysis involved several factors, including the size of the AC, the number of meetings held, the expertise of its members, and the extent of overlapping responsibilities. The results obtained from the linear model using fixed effects regression demonstrate that smaller ACs, comprising members with financial or accounting expertise tend to exhibit higher levels of FRD. A non-linear (quadratic) relationship is identified between AC members' experience and FRD. Notably, a critical threshold is observed at 21 companies, beyond which FRD declines. To enhance FRD, companies should limit the appointment of individuals who have served in more than 21 companies and prioritize the inclusion of expert members who have had less involvement in other committees. Our results are robust and confirmed using random effects generalized least squares regression. It is critical to acknowledge that this study has certain limitations that present opportunities for future research endeavors. Future studies should investigate the non-linearity of other variables, explore the implications of non-FRD, and expand the scope of analysis to an international level, encompassing diverse sectors and incorporating additional attributes such as education level and position.

Research paper thumbnail of Do level, field, and place of board members’ Education impact financial risk disclosure? A Saudi Empirical evidence

Research paper thumbnail of Are Family Members Expropriated-Monitoring Shareholders? Non-Linear Evidence from the Saudi Arabia

Jurnal Pengurusan, 2015

As family businesses grow worldwide, the significant role of family shareholders on firm value be... more As family businesses grow worldwide, the significant role of family shareholders on firm value becomes questionable. This study seeks to address this issue and provides new evidence on the non-linearity of family ownership-firm value relationship, based on 375 firm-year observations of 75 public listed companies in Saudi Arabia over five consecutive years (2007-2011). Interestingly, we provided evidence that the behavior of the Saudi families is changeable between expropriation and monitoring during the life of the business depending on the percentage of family ownership. We found sufficient evidence that the turning point occurs at the 28% family ownership. This confirmed the expropriated-monitoring behavior of family shareholders in their businesses. These results were robust with respect to different family definitions and analyses. Our findings suggested that investors should not undervalue Saudi family firms due to family ownership per se. At a certain degree of ownership, the benefits of Saudi family monitoring actually exceed the costs. The results suggested that there may be a need to encourage policy makers in Saudi Arabia to impose the full disclosure of firms' ownership information, including the percentage of ownership and the identity of owners.

Research paper thumbnail of Family Business Definition: A Matter of Concern or a Matter of Convenience?

Corporate Ownership and Control, 2014

This paper attempts to examine the impact of adopting multiple family ownership cut-offs in defin... more This paper attempts to examine the impact of adopting multiple family ownership cut-offs in defining family businesses, family ownership measurements, and conducting different types of analyses. For achieving this goal we have focus on the relationship between family ownership and firm performance (ROA) in the context of emerging market (Saudi Arabia), controlling for firm’s debt, age, size and industry sectors. With three family ownership cut-offs: 5%, 10%, and 20% and two type of analysis (cross-sectional and cross-sectional and time-series data) as well as two types of family ownership measures (ratio and dummy), we fond that the relationship between the two variables is consistent despite of the level of family ownership cut-off, analysis type, and measurement. This indicates that family business definition is not a matter of concern for researchers, but rather a matter of convenience.

Research paper thumbnail of Overview of Family Business in Saudi Arabia

Research paper thumbnail of A Conceptual Framework for the Moderating Effect of Family CEO and Generation on the Family Involvement in Ownership

Research paper thumbnail of Succession in Family Firms: A Review

Research paper thumbnail of Family Involvement in Ownership, Management, and Firm Performance: Moderating and Direct-Effect Models

Asian Social Science, 2014

This study aims to provide an empirical evidence on the moderating effect of family involvement i... more This study aims to provide an empirical evidence on the moderating effect of family involvement in management (family CEO and founder CEO) on the relationship between family ownership and firm's performance. From a sample of 75 public listed companies (375 firm-year observations) in Saudi Arabia, we use a five-year interval (2007-2011) and two firm performance indicators (market to book value (MBV) and return on assets (ROA)) to test five hypotheses. The hypotheses that there is a direct impact of family ownership and founder CEO on ROA and MBV were supported respectively. The hypothetical moderating impact of family CEO and founder CEO have been partially confirmed with MBV. Overall, the findings highlight the importance of occupying CEO positions in family firms by family members, especially the founders for gaining better performance. However, the results are robust when only family firms are examined separately.

Research paper thumbnail of Accountants’ Perceptions on the Adoption of International Financial Reporting Standards in Yemen

Developments in the global capital market have made the adoption of International Financial Repor... more Developments in the global capital market have made the adoption of International Financial Reporting Standard (IFRS) more significant than ever before. The purpose of this study is to examine the accountants’ perception of IFRSs adoption in Yemen. We also seek the accountants’ view on whether Yemen should adopt the IFRSs or not, and on the expected time taken to adopt the accounting standards. We also examine the difference in opinion between academicians and practitioners regarding the adoption of IFRSs. In this regard, this study carries out a survey of 48 Yemeni accounting postgraduate students in Malaysian public universities. We find that a majority of the respondents acknowledge the benefits of adopting IFRSs in Yemeni companies. Moreover, a majority of the respondents (82.9%) agree that Yemeni companies should adopt IFRSs. About 58.6% of respondents expect the period of IFRSs adoption in Yemen to be within three to 10 years, while 41.5% expect it to be more than 10 years. Th...

Research paper thumbnail of Family involvement and firm performance: Evidence from Saudi Arabia

Economies around the world are full of family businesses, the main and significant players in the... more Economies around the world are full of family businesses, the main and significant players in the growth of a nation. Saudi Arabia is no exception. As a result, family firm performance is considered as an important variable in the context of financial and management research. This study investigates the relationship between family involvement in ownership, management, control, and succession, as well as the presence of other blockholders on firm performance. Using longitudinal data from a panel of 38 non-financial Saudi family publiclisted companies (190 firm-year observations) from 2007 to 2011, and employing two different performance indicators (MBV and ROA), this study provides a sharp insight and deep understanding of the family firm characteristics and their influence on firm performance. The results provide strong evidence of the outperformance of family firms. However, when the non-linearity of family ownership is taken into account, the results become different; firm value d...

Research paper thumbnail of Are Family Members Expropriated-Monitoring Shareholders? Non-Linear Evidence from the Saudi Arabia

Jurnal Pengurusan

As family businesses grow worldwide, the significant role of family shareholders on firm value be... more As family businesses grow worldwide, the significant role of family shareholders on firm value becomes questionable. This study seeks to address this issue and provides new evidence on the non-linearity of family ownership-firm value relationship, based on 375 firm-year observations of 75 public listed companies in Saudi Arabia over five consecutive years (2007-2011). Interestingly, we provided evidence that the behavior of the Saudi families is changeable between expropriation and monitoring during the life of the business depending on the percentage of family ownership. We found sufficient evidence that the turning point occurs at the 28% family ownership. This confirmed the expropriated-monitoring behavior of family shareholders in their businesses. These results were robust with respect to different family definitions and analyses. Our findings suggested that investors should not undervalue Saudi family firms due to family ownership per se. At a certain degree of ownership, the benefits of Saudi family monitoring actually exceed the costs. The results suggested that there may be a need to encourage policy makers in Saudi Arabia to impose the full disclosure of firms' ownership information, including the percentage of ownership and the identity of owners.

Research paper thumbnail of Involvement of Board Chairmen in Audit Committees and Earnings Management: Evidence from Malaysia

The Journal of Asian Finance, Economics and Business

This paper investigates the effect of the involvement of the board chairman in the audit committe... more This paper investigates the effect of the involvement of the board chairman in the audit committee (AC) on earnings management (EM). It examines Bursa Malaysia-listed companies with the lowest positive earnings for the years 2013 to 2015. The Modified Jones Model by Kasznik (1999) was used to determine discretionary accruals. An AC that includes its board chairman as an ordinary member is associated with greater discretionary accruals. However, a board chairman who is also the chairman of the AC does not seem to influence discretionary accruals. This paper supports the agency theory and policy-makers’ efforts to prevent board chairmen from sitting on ACs. It is the first study that uses the agency theory to describe the association between the board chairman’s involvement in the both AC and EM. This study alerts policy-makers, stakeholders and researchers to the influence of a board chairman serving on the AC in curbing EM. Furthermore, it provides empirical evidence that the majority of Malaysian companies whose board chairmen are involved in the AC appoint the chairman as an ordinary member of the AC. This indicates that executive directors may affect such actions. Hence, more policies are needed to improve AC independence.

Research paper thumbnail of Does Family Involvement on Board of the Directors Contribute to Firm Profitability? An Empirical Evidence from Saudi Arabia

Literatures view board of the directors as the cornerstone of firm's success. Therefore, family i... more Literatures view board of the directors as the cornerstone of firm's success. Therefore, family involvement on the board and its impact on firm profitability is an issue of interest and need to be addressed. The purpose of this paper lies in the fact that it extracts new empirical evidence from a promising area in the world. The study proceeds with a cross-sectional time-series analysis based on a data of 75 Saudi non-financial public listed firms from 2007-2011(375 firm-year observations) to examine family representing on board of the directors, family chairman, and founder chairman and its impact on firm performance (ROA). The study concludes the outperformance of firms in which family represents heavily on the board. In addition, the results suggest that not all family members are good stewards. Strictly speaking, founder chairman only found to be beneficial to the firm profitability rather than others. However, the results confirmed its robustness against different indicator (EPS) and when family firms only being selected.

Research paper thumbnail of The Role of Other Blockholders: A Conceptual Framework

The European Proceedings of Social and Behavioural Sciences

This is an Open Access article distributed under the terms of the Creative Commons Attribution-No... more This is an Open Access article distributed under the terms of the Creative Commons Attribution-Noncommercial 4.0 Unported License, permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Research paper thumbnail of Overview of Family Business in Saudi Arabia

Research paper thumbnail of The Relationship between Risk Disclosure and Firm Performance: Empirical Evidence from Saudi Arabia

This study aims to examine the moderating effect of risk management disclosure on the relationshi... more This study aims to examine the moderating effect of risk management disclosure on the relationship between risk disclosure and firm performance as an attempt to contribute to the increasing body of literature concerning risk management disclosure by extracting new evidence from a fast-growing economic environment in Saudi Arabia. We used content analysis of cross-sectional data extracted from the audited annual reports of 72 non-financial Saudi listed firms in various non-financial sectors for the year 2018. Research hypotheses have been tested by using two robust statistical models (MM-Estimator Model and Robust Regression Model). The findings showed no evidence that risk disclosure and risk management disclosure matter concerning firm performance measured by the average of earning per share EPS when they are examined individually. However, when the moderating effect of risk management disclosure is considered, the results become significantly positive. These outcomes could explain...

Research paper thumbnail of Family Business Definition A Matter of Concern or A Matter of Convenience

Research paper thumbnail of A CONCEPTUAL FRAMEWORK FOR THE MODERATING EFFECT OF FAMILY CEO AND GENERATION ON THE FAMILY INVOLVEMENT IN OWNERSHIP-FIRM PERFORMANCE RELATIONSHIP

This paper aims to propose a conceptual framework in order to examine the moderating effect of fa... more This paper aims to propose a conceptual framework in order to examine the moderating effect of family CEO and his generation on the family ownership-firm performance relationship. A significant question regarding the topic of study is the effect of family involvement in ownership upon the firm's performance; previous studies provided mixed findings. These inconsistencies have made the link between family ownership and firm performance more complex, which may be affected by a moderator or a mediator. Previous literature recommended that future researchers concentrate mainly on who runs the firm as opposed to who owns it. One explanation for why the results were inconsistent may be related to the lack of understanding of the moderating effect of family CEOs and their generation. From the review of literature, conceptual framework and related hypotheses are developed.