AN EMPIRICAL INVESTIGATION OF FACTORS ASSOCIATED WITH FIRM PERFORMANCE: EVIDENCE FROM KINGDOM OF SAUDI ARABIA

被引:0
|
作者
Alzharani, Abdullah Mohammed [1 ]
Ahmad, Ayoib B. Che [1 ]
Aljaaidi, Khaled Sahnen [1 ]
机构
[1] Univ Utara Malaysia, Coll Business, Sintok 06010, Malaysia
关键词
ROA; ROE; Kingdom of Saudi Arabia; AGENCY PROBLEMS; OWNERSHIP; MECHANISMS; MARKETS;
D O I
暂无
中图分类号
F [经济];
学科分类号
02 ;
摘要
This study investigates the relations between agency cost variables (firm size, leverage and auditor type) and the firm performance of 392 listed companies in the Saudi Stock Exchange (Tadawul) during 2007-2010. This study identifies two measurements of the firm performance: (1) ROA and (2) ROE. Using the multiple regressions, the results of this study show that the likelihood a firm performance (ROA) is significantly affected increases with the firm size. On the other hand, leverage and auditor type have no influence on the firm performance. Interestingly, the explanatory power of firm performance (ROA) model is high. Somewhat surprisingly, model (2)'s explanatory power is insignificant indicating to the inability of the proposed variables (firm size, leverage and auditor type) in explaining the expected effect on firm performance (ROE).
引用
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页码:30 / 36
页数:7
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