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Corporate governance and the performance of non-financial firms: the case of Oman

Author

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  • Hana Bawazir

    (University of Bahrain, Bahrain)

  • Anis Khayati

    (University of Bahrain, Bahrain)

  • Fatema AbdulMajeed

    (University of Bahrain, Bahrain)

Abstract

Last two decades, corporate accounting scandals have represented a serious challenge to economic sustainability. To protect the shareholders right against abusive managerial conduct, the concepts of corporate governance structures and provisions have widely attracted the attention of practitioners and researchers. The main purpose of this paper is to examine the linkage between corporate governance and the performance of non-financial firms listed on Muscat Securities Market over the period 2007-2017. Additionally, whether financial leverage acts as a mediating factor is investigated. A panel fixed effect regression is conducted to test if there is a relationship between corporate governance, capital structure and firm performance. Overall results show that women on board, audit committee size, leverage and firm size are positively related to firm performance. The study presents a strong understanding to senior management to be focused more on corporate governance codes and regulations, as well as to both internal and external auditors to strictly monitor the application of corporate governance regulations.

Suggested Citation

  • Hana Bawazir & Anis Khayati & Fatema AbdulMajeed, 2021. "Corporate governance and the performance of non-financial firms: the case of Oman," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(4), pages 595-609, June.
    • Handle: RePEc:ssi:jouesi:v:8:y:2021:i:4:p:595-609
    DOI: 10.9770/jesi.2021.8.4(36)
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    Cited by:

    1. Pompei MITITEAN, 2023. "The Relationship Between Corporate Governance Mechanisms and Financial Institution Performance. A COVID-19 Perspective," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 3(12), pages 55-65, December .
    2. Quang Linh Huynh & Mohammad Enamul Hoque & Perengki Susanto & Waqas Ahmad Watto & Maryam Ashraf, 2022. "Does Financial Leverage Mediates Corporate Governance and Firm Performance?," Sustainability, MDPI, vol. 14(20), pages 1-20, October.

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    More about this item

    Keywords

    corporate governance; financial leverage; capital structure; firm performance; Oman; Gulf Cooperation Council (GCC) Countries;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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