1. Done by: Zainan AlBeesh Assessment 3
The Relationship between Corporate Governance and Financial Performance of Saudi Corporations
Done by: Zainan AlBeesh Assessment 3

2. Introduction Corporate Governance Board of directors
Government mechanism
Internal external

3. Research Problems
Does corporate governance affect the financial performance of Saudi corporations?
What factors of corporate governance affect the financial performance of Saudi corporations?

4. Research Hypotheses
Null hypothesis 1: There are no effects of corporate governance on the financial performance of Saudi corporations
Alternative hypothesis 1: The corporate governance has effects on the financial performance of Saudi corporations

5. Null hypothesis 2: There are no corporate governance factors that affect the financial performance of Saudi corporations
Alternative hypothesis 2: There are corporate governance factors that affect the financial performance of Saudi corporations

6. Research Methodology
qualitative research
Secondary data

7. Findings Saudi Arabia has the largest stock market
With $202.5 billion.
It is the largest oil producer and exporter
GDP= $376 billion

8. Conclusions
There is a strong relationship between corporate governance and the financial performance of Saudi corporations.
Studies have shown that Saudi corporations have strong corporate governance and majority of Saudi corporations are insider owners. Strong corporate governance in Saudi Arabia seems not to place monitoring mechanisms to track their managers.

9. Conclusions
There are corporate governance factors that each affects strongly and positively related to firm performance or value.

10. References
Basheikh A. and Page M. (2003). Narrative Reports: Users’ and Preparers’ Views of Chairman’s Report and Directors’ Report in Saudi Arabia. Retrieved on September 20, from website: ciences/ news/ documents/%D8%A3%D8%B1%D8%B4%D9%8A%D9%81%2 0%D8%A7%D9%84%D9%86%D8%AF%D9%88%D8%A7%D8 %AA.pdf
Capital Market Authority. (2006). Corporate Governance Regulations
In The Kingdom Of Saudi Arabia. Retrieved on September 20, 2012 from website:
VERNANCE%20REGULATIONS-2011.pdf

11. Global Investment House and SAMBA Financial Group. (2007)
Global Investment House and SAMBA Financial Group. (2007). The guide to Corporate Governance in the GCC. Retrieved on September 20, 2012 from website:
Hart O. (1995). Corporate Governance: Some theory and Implications. The Economic Journal Vol105, Issue 430. Retrieved on September 20, 2012 from website: EJ%2095%20Corp%20Gov.pdf
Kraft J. and Ravix, J.J. (2008). Corporate governance in advanced economies: lessons in a post financial crash era Introduction to the Special Issue. Retrieved on September 20, 2012 from website: docs/00/33/27/37/PDF/REL-INTRO pdf