Does family involvement on board of the directors contribute to firm profitability? An empirical evidence from Saudi Arabia
Literatures view board of the directors as the cornerstone of firm’s success.Therefore, family involvement on the board and its impact on firm profitability is an issue of interest and need to be addressed.The purpose of this paper lies in the fact that it extracts new empirical evidence from a prom...
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2015
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my.uum.repo.161692016-04-12T06:44:55Z http://repo.uum.edu.my/16169/ Does family involvement on board of the directors contribute to firm profitability? An empirical evidence from Saudi Arabia Al-Dubai, Shehabaddin Abdullah A. Ku Ismail, Ku Nor Izah Amran, Noor Afza HD28 Management. Industrial Management Literatures view board of the directors as the cornerstone of firm’s success.Therefore, family involvement on the board and its impact on firm profitability is an issue of interest and need to be addressed.The purpose of this paper lies in the fact that it extracts new empirical evidence from a promising area in the world.The study proceeds with a cross-sectional time-series analysis based on a data of 75 Saudi non-financial public listed firms from 2007-2011(375 firm-year observations) to examine family representing on board of the directors, family chairman, and founder chairman and its impact on firm performance (ROA).The study concludes the out performance of firms in which family represents heavily on the board.In addition, the results suggest that not all family members are good stewards.Strictly speaking, founder chairman only found to be beneficial to the firm profitability rather than others. However, the results confirmed its robustness against different indicator (EPS) and when family firms only being selected. Virtus Interpress 2015 Article PeerReviewed application/pdf en http://repo.uum.edu.my/16169/1/74.pdf Al-Dubai, Shehabaddin Abdullah A. and Ku Ismail, Ku Nor Izah and Amran, Noor Afza (2015) Does family involvement on board of the directors contribute to firm profitability? An empirical evidence from Saudi Arabia. Corporate Board: Role, Duties and Composition, 11 (2 C1). pp. 159-170. ISSN 1810-8601 http://www.virtusinterpress.org/Published-Issues-of-the-Journal,77.html |
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HD28 Management. Industrial Management Al-Dubai, Shehabaddin Abdullah A. Ku Ismail, Ku Nor Izah Amran, Noor Afza Does family involvement on board of the directors contribute to firm profitability? An empirical evidence from Saudi Arabia |
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Literatures view board of the directors as the cornerstone of firm’s success.Therefore, family involvement on the board and its impact on firm profitability is an issue of interest and need to be addressed.The purpose of this paper lies in the fact that it extracts new empirical evidence from a promising area in the world.The study proceeds with a cross-sectional time-series analysis based on a data of 75 Saudi non-financial public listed firms from 2007-2011(375 firm-year observations) to examine family representing on board of the directors, family chairman, and founder chairman and its impact on firm performance (ROA).The study concludes the out performance of firms in which family represents heavily on the board.In addition, the results suggest that not all family members are good stewards.Strictly speaking, founder chairman only found to be beneficial to the firm profitability rather than others. However, the results confirmed its robustness against different indicator (EPS) and when family firms only being selected. |
format |
Article |
author |
Al-Dubai, Shehabaddin Abdullah A. Ku Ismail, Ku Nor Izah Amran, Noor Afza |
author_facet |
Al-Dubai, Shehabaddin Abdullah A. Ku Ismail, Ku Nor Izah Amran, Noor Afza |
author_sort |
Al-Dubai, Shehabaddin Abdullah A. |
title |
Does family involvement on board of the directors contribute to firm profitability? An empirical evidence from Saudi Arabia |
title_short |
Does family involvement on board of the directors contribute to firm profitability? An empirical evidence from Saudi Arabia |
title_full |
Does family involvement on board of the directors contribute to firm profitability? An empirical evidence from Saudi Arabia |
title_fullStr |
Does family involvement on board of the directors contribute to firm profitability? An empirical evidence from Saudi Arabia |
title_full_unstemmed |
Does family involvement on board of the directors contribute to firm profitability? An empirical evidence from Saudi Arabia |
title_sort |
does family involvement on board of the directors contribute to firm profitability? an empirical evidence from saudi arabia |
publisher |
Virtus Interpress |
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2015 |
url |
http://repo.uum.edu.my/16169/1/74.pdf http://repo.uum.edu.my/16169/ http://www.virtusinterpress.org/Published-Issues-of-the-Journal,77.html |
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1644281899050336256 |
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13.154949 |