Received: 2021-03-11  |  Accepted: 2021-04-28  |  Published: 2021-06-30

Title

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


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.


Keywords

corporate governance, financial leverage, capital structure, firm performance, Oman, Gulf Cooperation Council (GCC) Countries


JEL classifications

G34 , O14 , L25 , M21


URI

http://jssidoi.org/jesi/article/842


DOI


Pages

595-609


Funding


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Bawazir, Hana
University of Bahrain, Isa Town, Bahrain http://www.uob.edu.bh
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Khayati, Anis
University of Bahrain, Isa Town, Bahrain http://www.uob.edu.bh
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AbdulMajeed, Fatema
University of Bahrain, Isa Town, Bahrain http://www.uob.edu.bh
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Journal title

Entrepreneurship and Sustainability Issues

Volume

8


Number

4


Issue date

June 2021


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

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References