Relationship between Capital Requirement, Ownership Structure, and Financial Performance in Saudi Arabian Listed Companies

Asian Economic and Financial Review

article

Suha Alawi¹ 

[1] Assistant Professor of Finance, Department of Finance, Faculty of Economics and Administration, King Abdulaziz University

关键词: The regulators’ role;    Ownership concentration;    Foreign ownership;    Capital requirements;    Return on asset (ROA);    Return on equity (ROE).;   

DOI  :  10.18488/journal.aefr.2019.99.1077.1090

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

Saudi Arabia’s capital market is highly concentrated due its regulators’ visible role. This study analyses the regulators’ role on the return on assets (ROA) and return on equity (ROE) to examine their impact on the capital market’s growth. Variables including institutional ownership, government ownership, foreign ownership and capital requirements were examined. Data was collected through the TASI Stock Market. The study included a panel dataset to observe 171 private and public listed companies by using the cross-sectional data from 2010 to 2014. Findings illustrated that company ownership concentration had a positive relationship in improving company’s performances, but foreign ownership had minimum significance. Similarly, ROA and ROE had a positive relationship with capital requirements. For various Saudi private and public listed companies, it is important to pay attention to capital market regulation as it plays a crucial role in improving company performance.

【 授权许可】

CC BY