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Corporate Governance, Capital Structure and Corporate Performance: Evidence from GCC Countries

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  • Zeitun Rami

    (Department of Finance and Economics, Qatar University, Doha, Qatar)

Abstract

This study investigates the effect of ownership structure and concentration on firm performance for 203 companies from five GCC countries (Qatar, Kuwait, Saudi Arabia, Bahrain and Oman), using a panel data analysis for the period 2000–2010. The study further examines the effects of financial leverage and risk. Our results indicate that ownership structure affects firm performance in GCC countries. Government ownership affects firm performance ROA while foreign and institutional ownership are found not to be significant. The results also show that ownership concentration affects firm performance positively and significantly. A firm’s capital structure has no effect on performance. Furthermore, the study concludes that age and size have a positive and significant impact on corporate performance.

Suggested Citation

  • Zeitun Rami, 2014. "Corporate Governance, Capital Structure and Corporate Performance: Evidence from GCC Countries," Review of Middle East Economics and Finance, De Gruyter, vol. 10(1), pages 1-22, April.
    • Handle: RePEc:bpj:rmeecf:v:10:y:2014:i:1:p:22:n:1
    DOI: 10.1515/rmeef-2012-0028
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    14. BĂRNUŢ Cătălin-Florin, 2020. "Stock Market Performance Analysis Of Pharmaceutical, It And Automotive Companies From Poland," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 177-188, July.
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    18. Vu, Manh-Chien & Phan, Thanh Tu & Le, Nhu Tuyen, 2018. "Relationship between board ownership structure and firm financial performance in transitional economy: The case of Vietnam," Research in International Business and Finance, Elsevier, vol. 45(C), pages 512-528.
    19. Shakri, Irfan Haider & Yong, Jaime & Xiang, Erwei, 2022. "Does compliance with corporate governance increase profitability? Evidence from an emerging economy: Pakistan," Global Finance Journal, Elsevier, vol. 53(C).
    20. Akbar, Muhammad & Hussain, Shahzad & Ahmad, Tanveer & Hassan, Shoib, 2020. "Corporate Governance and Firm Performance in Pakistan: Dynamic Panel Estimation," CAFE Working Papers 6, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.
    21. An Nguyen & Tuan Nguyen, 2018. "Free cash flow and corporate profitability in emerging economies: Empirical evidence from Vietnam," Economics Bulletin, AccessEcon, vol. 38(1), pages 211-220.

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