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Gender Wise Saudi Investors' Awareness of Corporate Governance Mechanism and Its Importance in Their Investment Decision Making – An Empirical Study

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  • Rima Al-Sager
  • Durga Prasad Samontaray

Abstract

This paper discusses the gender wise investors' awareness of corporate governance concepts and its importance in their investment decision process. It also answers the two questions "do investors depend on information related to corporate governance to make their investment decisions?" and "are the mechanisms of corporate governance important to them?" Books, studies, and research articles are used to enrich this paper. A survey is used as a tool to investigate the opinion of male and female investors, about corporate governance concepts and its importance on investors' decision making process. The survey shows that investors do not have a clear definition of corporate governance but they believe that it is important from companies' point of view. Also, most of investors do not always depend on information or factors that related to corporate governance as a base for their investment decisions. Mainly, Saudi investors care about board committees, disclosure and transparency as mechanisms of corporate governance.

Suggested Citation

  • Rima Al-Sager & Durga Prasad Samontaray, 2018. "Gender Wise Saudi Investors' Awareness of Corporate Governance Mechanism and Its Importance in Their Investment Decision Making – An Empirical Study," International Business Research, Canadian Center of Science and Education, vol. 11(3), pages 118-132, March.
    • Handle: RePEc:ibn:ibrjnl:v:11:y:2018:i:3:p:118-132
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    References listed on IDEAS

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    Cited by:

    1. Al-Faryan, Mamdouh Abdulaziz Saleh, 2021. "The Effect of Board Composition and Managerial Pay on Saudi Firm Performance," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Online fi.
    2. Candy & Guseriwan, 2020. "Investment Decision Making of Institutional Investor: What is Behind It?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(6), pages 435-438, June.

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    More about this item

    Keywords

    audit committee; board committees; board composition; board of directors; board size; CMA; compensation committee; disclosure; executive committee; nominating committee; ownership structure; Tadawul; and transparency;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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