Economic Value of Energy and Petrochemical Companies and Multiple Directorships: Evidence from Saudi Arabia

The existence of multiple directorships is the case when a board member is serving on two or more boards or a number of other external appointments. This study aims to examine the impact of multiple directorships on a firm’s economic values among Saudi listed companies using the busyness hypothesis....

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Autores:
Salmen Aljaaidi, Khaled
Tipo de recurso:
Fecha de publicación:
2022
Institución:
Universidad EAFIT
Repositorio:
Repositorio EAFIT
Idioma:
eng
OAI Identifier:
oai:repository.eafit.edu.co:10784/33190
Acceso en línea:
http://hdl.handle.net/10784/33190
Palabra clave:
Corporate governance
Multiple directorships
Economic value
Emerging markets
Saudi Arabia
Gobierno corporativo
Directorio múltiple
Desempeño de la empresa
Mercados emergentes
Arabia Saudita
Rights
License
Copyright © 2022 khaled Salmen Aljaaidi
id REPOEAFIT2_77780cb8655cf6c8f3235c45d6881098
oai_identifier_str oai:repository.eafit.edu.co:10784/33190
network_acronym_str REPOEAFIT2
network_name_str Repositorio EAFIT
repository_id_str
dc.title.eng.fl_str_mv Economic Value of Energy and Petrochemical Companies and Multiple Directorships: Evidence from Saudi Arabia
dc.title.spa.fl_str_mv Valor económico de las empresas de energía y petroquímica y directorios múltiples: evidencia de Arabia Saudita
title Economic Value of Energy and Petrochemical Companies and Multiple Directorships: Evidence from Saudi Arabia
spellingShingle Economic Value of Energy and Petrochemical Companies and Multiple Directorships: Evidence from Saudi Arabia
Corporate governance
Multiple directorships
Economic value
Emerging markets
Saudi Arabia
Gobierno corporativo
Directorio múltiple
Desempeño de la empresa
Mercados emergentes
Arabia Saudita
title_short Economic Value of Energy and Petrochemical Companies and Multiple Directorships: Evidence from Saudi Arabia
title_full Economic Value of Energy and Petrochemical Companies and Multiple Directorships: Evidence from Saudi Arabia
title_fullStr Economic Value of Energy and Petrochemical Companies and Multiple Directorships: Evidence from Saudi Arabia
title_full_unstemmed Economic Value of Energy and Petrochemical Companies and Multiple Directorships: Evidence from Saudi Arabia
title_sort Economic Value of Energy and Petrochemical Companies and Multiple Directorships: Evidence from Saudi Arabia
dc.creator.fl_str_mv Salmen Aljaaidi, Khaled
dc.contributor.author.spa.fl_str_mv Salmen Aljaaidi, Khaled
dc.contributor.spa.fl_str_mv Prince Sattam bin Abdulaziz University
dc.subject.keyword.eng.fl_str_mv Corporate governance
Multiple directorships
Economic value
Emerging markets
Saudi Arabia
topic Corporate governance
Multiple directorships
Economic value
Emerging markets
Saudi Arabia
Gobierno corporativo
Directorio múltiple
Desempeño de la empresa
Mercados emergentes
Arabia Saudita
dc.subject.keyword.spa.fl_str_mv Gobierno corporativo
Directorio múltiple
Desempeño de la empresa
Mercados emergentes
Arabia Saudita
description The existence of multiple directorships is the case when a board member is serving on two or more boards or a number of other external appointments. This study aims to examine the impact of multiple directorships on a firm’s economic values among Saudi listed companies using the busyness hypothesis. As for the methodology, this study collected secondary data from the annual reports of the listed companies that include corporate governance and firm-specific characteristics. In addition, this study reviewed the extant research related to the multiple directorships and firms’ economic values. Using a sample of 140 Energy and Petrochemical companies for the period 2012-2019, the Ordinary-Least Square (OLS) results show that busy directors negatively influence the firm’s economic value, measured as ROA and ROE. The findings of this study have theoretical implications in a manner that gives support to the busyness hypothesis in the Saudi context, which is considered a different setting from other studies conducted in other developed and developing countries in terms of politics, economic factors, and culture. This study adds additional empirical evidence in the unique setting of Saudi Arabia. In addition, the findings of this study could have practical implications to policymakers, shareholders, management, auditors, and other stakeholders in gaining a deeper understanding of how multiple directorships negatively influence the firm’s economic value.
publishDate 2022
dc.date.issued.none.fl_str_mv 2022-12-12
dc.date.available.none.fl_str_mv 2023-12-13T16:11:00Z
dc.date.accessioned.none.fl_str_mv 2023-12-13T16:11:00Z
dc.date.none.fl_str_mv 2022-12-12
dc.type.eng.fl_str_mv article
info:eu-repo/semantics/article
publishedVersion
info:eu-repo/semantics/publishedVersion
dc.type.coarversion.fl_str_mv http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.coar.fl_str_mv http://purl.org/coar/resource_type/c_6501
http://purl.org/coar/resource_type/c_2df8fbb1
dc.type.spa.spa.fl_str_mv Artículo
status_str publishedVersion
dc.identifier.issn.none.fl_str_mv 2256-4322
1692-0279
dc.identifier.uri.none.fl_str_mv http://hdl.handle.net/10784/33190
dc.identifier.doi.none.fl_str_mv 10.17230/Ad-minister.41.6
identifier_str_mv 2256-4322
1692-0279
10.17230/Ad-minister.41.6
url http://hdl.handle.net/10784/33190
dc.language.iso.none.fl_str_mv eng
language eng
dc.relation.isversionof.none.fl_str_mv http://publicaciones.eafit.edu.co/index.php/administer/article/view/7219
dc.relation.uri.none.fl_str_mv http://publicaciones.eafit.edu.co/index.php/administer/article/view/7219
dc.rights.eng.fl_str_mv Copyright © 2022 khaled Salmen Aljaaidi
dc.rights.coar.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.rights.accessrights.eng.fl_str_mv openAccess
dc.rights.acceso.spa.fl_str_mv Libre acceso
rights_invalid_str_mv Copyright © 2022 khaled Salmen Aljaaidi
openAccess
Libre acceso
http://purl.org/coar/access_right/c_abf2
dc.format.none.fl_str_mv application/pdf
dc.publisher.spa.fl_str_mv Universidad EAFIT
dc.source.spa.fl_str_mv AD-minister: No 41 (2022)
institution Universidad EAFIT
bitstream.url.fl_str_mv https://repository.eafit.edu.co/bitstreams/59cd96be-d7df-46be-9edb-c61be9bfecff/download
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repository.name.fl_str_mv Repositorio Institucional Universidad EAFIT
repository.mail.fl_str_mv repositorio@eafit.edu.co
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spelling Prince Sattam bin Abdulaziz UniversitySalmen Aljaaidi, Khaled2022-12-122023-12-13T16:11:00Z2022-12-122023-12-13T16:11:00Z2256-43221692-0279http://hdl.handle.net/10784/3319010.17230/Ad-minister.41.6The existence of multiple directorships is the case when a board member is serving on two or more boards or a number of other external appointments. This study aims to examine the impact of multiple directorships on a firm’s economic values among Saudi listed companies using the busyness hypothesis. As for the methodology, this study collected secondary data from the annual reports of the listed companies that include corporate governance and firm-specific characteristics. In addition, this study reviewed the extant research related to the multiple directorships and firms’ economic values. Using a sample of 140 Energy and Petrochemical companies for the period 2012-2019, the Ordinary-Least Square (OLS) results show that busy directors negatively influence the firm’s economic value, measured as ROA and ROE. The findings of this study have theoretical implications in a manner that gives support to the busyness hypothesis in the Saudi context, which is considered a different setting from other studies conducted in other developed and developing countries in terms of politics, economic factors, and culture. This study adds additional empirical evidence in the unique setting of Saudi Arabia. In addition, the findings of this study could have practical implications to policymakers, shareholders, management, auditors, and other stakeholders in gaining a deeper understanding of how multiple directorships negatively influence the firm’s economic value.La existencia de dirección múltiple es el caso cuando un miembro de la junta se desempeña en dos o más juntas o una serie de otros nombramientos externos. Este estudio tiene como objetivo examinar el impacto de la dirección múltiple en los valores económicos de la empresa entre las empresas saudíes que cotizan en bolsa utilizando la hipótesis de actividad. En cuanto a la metodología, este estudio recopiló los datos secundarios de los informes anuales de las empresas cotizadas que incluyen el gobierno corporativo y las características específicas de la empresa. Además, este estudio revisó la investigación existente relacionada con los múltiples directorios y los valores económicos de las empresas. Utilizando una muestra de 140 empresas de energía y petroquímica para el período 2012-2019, los resultados de los mínimos cuadrados ordinarios (OLS) muestran que los directores ocupados influyen negativamente en el valor económico de la empresa, medido como ROA y ROE. Los hallazgos de este estudio tienen implicaciones teóricas en el sentido de que respalda la hipótesis del ajetreo en el contexto saudí, que se considera un escenario diferente de otros estudios realizados en otros países desarrollados y en desarrollo en términos de política, economía y cultura. Este estudio agrega una evidencia empírica adicional en el entorno único de Arabia Saudita. Además, los hallazgos de este estudio podrían tener implicaciones prácticas para los formuladores de políticas, los accionistas, la gerencia, los auditores y otras partes interesadas para obtener una comprensión más profunda de cómo la dirección múltiple influye negativamente en el valor económico de la empresa.application/pdfengUniversidad EAFIThttp://publicaciones.eafit.edu.co/index.php/administer/article/view/7219http://publicaciones.eafit.edu.co/index.php/administer/article/view/7219Copyright © 2022 khaled Salmen AljaaidiopenAccessLibre accesohttp://purl.org/coar/access_right/c_abf2AD-minister: No 41 (2022)Economic Value of Energy and Petrochemical Companies and Multiple Directorships: Evidence from Saudi ArabiaValor económico de las empresas de energía y petroquímica y directorios múltiples: evidencia de Arabia Sauditaarticleinfo:eu-repo/semantics/articlepublishedVersioninfo:eu-repo/semantics/publishedVersionArtículohttp://purl.org/coar/version/c_970fb48d4fbd8a85http://purl.org/coar/resource_type/c_6501http://purl.org/coar/resource_type/c_2df8fbb1Corporate governanceMultiple directorshipsEconomic valueEmerging marketsSaudi ArabiaGobierno corporativoDirectorio múltipleDesempeño de la empresaMercados emergentesArabia SauditaAD-minister41149166THUMBNAILadminister_41.pngadminister_41.pngimage/png40509https://repository.eafit.edu.co/bitstreams/59cd96be-d7df-46be-9edb-c61be9bfecff/download594366a16a8b87e50d03fa2de150a1faMD5110784/33190oai:repository.eafit.edu.co:10784/331902023-12-13 11:36:06.072metadata.onlyhttps://repository.eafit.edu.coRepositorio Institucional Universidad EAFITrepositorio@eafit.edu.co