The influence of royal board of directors and other board characteristics on corporate risk disclosure practices
This study focuses on Saudi’s unique social and cultural context and its impact on board attributes and corporate risk disclosure (CRD) by addressing the relationship between royal family members on the board and CRD. Using content analysis of a sample of 307 company-year observations over the pe...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
2017
|
| Subjects: | |
| Online Access: | http://eprints.unisza.edu.my/5303/1/FH02-FESP-17-09801.pdf http://eprints.unisza.edu.my/5303/ |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | This study focuses on Saudi’s unique social and cultural context and its impact on board
attributes and corporate risk disclosure (CRD) by addressing the relationship between royal
family members on the board and CRD. Using content analysis of a sample of 307 company-year
observations over the period of 2008-2011, the results from the descriptive statistics show a
moderate level of CRD practices among firms. The initial and additional results from the panel
data analysis show that board characteristics, namely, board size, board independence, royal
family members on the board, and meeting frequency of the board of directors are important
determinants of CRD in Saudi Arabia. The positive influence of royal family members on CRD in
this study contradicts the classic negative relationship between family members on the board
and disclosure, which indicates that not all types of families’ members on the board have the
same motivation towards corporate disclosure. |
|---|