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Fintech, Board of Directors and Corporate Performance in Saudi Arabia Financial Sector: Empirical Study

Author

Listed:
  • Ebrahim Mohammed Al-Matari

    (Department of Accounting, College of Business, Jouf University, Sakakah 75911, Saudi Arabia)

  • Mahfoudh Hussein Mgammal

    (Department of Accounting, College of Business, Jouf University, Sakakah 75911, Saudi Arabia)

  • Mushari Hamdan Alosaimi

    (Department of Accounting, College of Business Administration, Umm Al-Qura University, Makkah 24382, Saudi Arabia)

  • Talal Fawzi Alruwaili

    (Department of Accounting, College of Business, Jouf University, Sakakah 75911, Saudi Arabia)

  • Sultan Al-Bogami

    (Department of Accounting, College of Business Administration, Umm Al-Qura University, Makkah 24382, Saudi Arabia)

Abstract

On a global scale, the Fintech sector has become increasingly important for keeping abreast of developments and progressions in the financial field. This study aimed to examine the impact of Fintech on the financial sector of Saudi Arabia and the role of Fintech in the relationship between the board of directors and corporate performance among Saudi financial firms listed on the stock market. Data were obtained from financial sector firms, covering banks and insurance firms from 2014 to 2020. The results revealed that board size, board independence, board meeting, board experience, and Fintech have a significant relationship with corporate performance. In relation to additional analyses, this study found that the board of directors’ score has a significant association with performance. Moreover, this study found that Fintech does not moderate the relationship between the board of directors’ score and corporate performance. This study sheds light on the effect of Fintech on the financial sector of Saudi Arabia, contributing new information to the literature. The study results are expected to have implications for several stakeholder groups. First, the study findings can be beneficial to academics, in terms of new knowledge and understanding of Fintech in the context of Saudi Arabia, a country that represents the Gulf region and the Arab World. The findings also have implications for policy-makers and practitioners in the Saudi and Middle-Eastern countries, Asia, and developing nations that have a similar culture, socio-economic institutions, or socio-economic environments.

Suggested Citation

  • Ebrahim Mohammed Al-Matari & Mahfoudh Hussein Mgammal & Mushari Hamdan Alosaimi & Talal Fawzi Alruwaili & Sultan Al-Bogami, 2022. "Fintech, Board of Directors and Corporate Performance in Saudi Arabia Financial Sector: Empirical Study," Sustainability, MDPI, vol. 14(17), pages 1-23, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:17:p:10750-:d:900773
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    2. Leng, Chunyu & Wei, Siao-Yun & Al-Abyadh, Mohammed Hasan Ali & Halteh, Khaled & Bauetdinov, Majit & Le, Luan Thanh & Alzoubi, Haitham M., 2024. "An empirical assessment of the effect of natural resources and financial technologies on sustainable development in resource abundant developing countries: Evidence using MMQR estimation," Resources Policy, Elsevier, vol. 89(C).
    3. Yalin Mo & Yuchen Che & Wenqiao Ning, 2023. "Digital Finance Promotes Corporate ESG Performance: Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-23, July.
    4. Omer Saeed Habtoor, 2022. "Board Attributes and Bank Performance in Light of Saudi Corporate Governance Regulations," JRFM, MDPI, vol. 15(10), pages 1-27, September.
    5. Wang, Xiaoran & Ibrahim, Haslindar, 2024. "Unveiling the effects of mineral markets, fintech and governance on business performance: Evidence from China," Resources Policy, Elsevier, vol. 91(C).

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