Corporate governance effect on firms' performance - evidence from the UAE

Purpose – The purpose of this paper is to show the effect of the corporate governance (CG) on firms’ performance in the United Arab Emirates (UAE). The governance mechanisms employed in this study are board size, board independence and audit committee’s (AC) characteristics. The examined AC charac...

Full description

Bibliographic Details
Main Authors:	Farhan, Ayda, Sheikh Obid, Siti Normala, Annuar, Hairul Azlan
Format:	Article
Language:	English English
Published:	Emerald Group Publishing Ltd. 2017
Subjects:	HF5601 Accounting. Bookkeeping
Online Access:	http://irep.iium.edu.my/56734/ http://irep.iium.edu.my/56734/ http://irep.iium.edu.my/56734/ http://irep.iium.edu.my/56734/1/JEAS%20-%20Corporate%20Governance%20and%20firms%27%20performance%20in%20the%20UAE.pdf http://irep.iium.edu.my/56734/13/56734_Corporate%20governance%20effect%20on%20firms%E2%80%99%20performance_WOS.pdf

id	iium-56734
recordtype	eprints
spelling	iium-567342018-04-17T05:00:57Z http://irep.iium.edu.my/56734/ Corporate governance effect on firms' performance - evidence from the UAE Farhan, Ayda Sheikh Obid, Siti Normala Annuar, Hairul Azlan HF5601 Accounting. Bookkeeping Purpose – The purpose of this paper is to show the effect of the corporate governance (CG) on firms’ performance in the United Arab Emirates (UAE). The governance mechanisms employed in this study are board size, board independence and audit committee’s (AC) characteristics. The examined AC characteristics are: AC member’s independence, number of financial experts in the committee, ratio of meetings held during the year, and the incentives received by the AC members. Design/methodology/approach – This paper uses all the public listed corporations in the UAE financial markets. The secondary data for four years are used starting from 2010 where the mandatory corporate governance code had been mandated. Findings – Board independence has been found to negatively affect firms’ performance. AC meetings and financial experts’ ratio did not affect firm’s performance, while AC incentives and AC independence negatively affected firms’ performance. Originality/value – This study is supposed to fill the gap of the lack in CG studies based on fast growing economy which is UAE. Besides, this research investigates the AC’s characters’ effect on firms’ performance which was rarely covered in literature. Keywords Corporate governance, Business performance, Auditing Emerald Group Publishing Ltd. 2017 Article PeerReviewed application/pdf en http://irep.iium.edu.my/56734/1/JEAS%20-%20Corporate%20Governance%20and%20firms%27%20performance%20in%20the%20UAE.pdf application/pdf en http://irep.iium.edu.my/56734/13/56734_Corporate%20governance%20effect%20on%20firms%E2%80%99%20performance_WOS.pdf Farhan, Ayda and Sheikh Obid, Siti Normala and Annuar, Hairul Azlan (2017) Corporate governance effect on firms' performance - evidence from the UAE. Journal of Economics and Administrative Sciences, 33 (1). pp. 66-80. ISSN 1026-4116 http://www.emeraldinsight.com/doi/full/10.1108/JEAS-01-2016-0002 10.1108/JEAS-01-2016-000
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HF5601 Accounting. Bookkeeping
spellingShingle	HF5601 Accounting. Bookkeeping Farhan, Ayda Sheikh Obid, Siti Normala Annuar, Hairul Azlan Corporate governance effect on firms' performance - evidence from the UAE
description	Purpose – The purpose of this paper is to show the effect of the corporate governance (CG) on firms’ performance in the United Arab Emirates (UAE). The governance mechanisms employed in this study are board size, board independence and audit committee’s (AC) characteristics. The examined AC characteristics are: AC member’s independence, number of financial experts in the committee, ratio of meetings held during the year, and the incentives received by the AC members. Design/methodology/approach – This paper uses all the public listed corporations in the UAE financial markets. The secondary data for four years are used starting from 2010 where the mandatory corporate governance code had been mandated. Findings – Board independence has been found to negatively affect firms’ performance. AC meetings and financial experts’ ratio did not affect firm’s performance, while AC incentives and AC independence negatively affected firms’ performance. Originality/value – This study is supposed to fill the gap of the lack in CG studies based on fast growing economy which is UAE. Besides, this research investigates the AC’s characters’ effect on firms’ performance which was rarely covered in literature. Keywords Corporate governance, Business performance, Auditing
format	Article
author	Farhan, Ayda Sheikh Obid, Siti Normala Annuar, Hairul Azlan
author_facet	Farhan, Ayda Sheikh Obid, Siti Normala Annuar, Hairul Azlan
author_sort	Farhan, Ayda
title	Corporate governance effect on firms' performance - evidence from the UAE
title_short	Corporate governance effect on firms' performance - evidence from the UAE
title_full	Corporate governance effect on firms' performance - evidence from the UAE
title_fullStr	Corporate governance effect on firms' performance - evidence from the UAE
title_full_unstemmed	Corporate governance effect on firms' performance - evidence from the UAE
title_sort	corporate governance effect on firms' performance - evidence from the uae
publisher	Emerald Group Publishing Ltd.
publishDate	2017
url	http://irep.iium.edu.my/56734/ http://irep.iium.edu.my/56734/ http://irep.iium.edu.my/56734/ http://irep.iium.edu.my/56734/1/JEAS%20-%20Corporate%20Governance%20and%20firms%27%20performance%20in%20the%20UAE.pdf http://irep.iium.edu.my/56734/13/56734_Corporate%20governance%20effect%20on%20firms%E2%80%99%20performance_WOS.pdf
first_indexed	2023-09-18T21:20:06Z
last_indexed	2023-09-18T21:20:06Z
_version_	1777411824794206208

Corporate governance effect on firms' performance - evidence from the UAE

Similar Items