The Role of Corporate Governance, Risk Behaviour, and Capital Structure on Financial Performance of Companies: Evidence from GCC Countries

Abstract

This study examined the role of corporate governance, risk behaviour, and capital structure on financial performance of list companies within Gulf Council Countries. This is done through investigating the influence of three independent variables of (corporate governance, risk behaviour, and capital structure ) over the dependent variable of financial performance. Data collected from 230 companies between 2016 and 2021 from Saudi Arabia, Kuwait, Qatar, United Arab Emirates, and Bahrain, and Oman. The findings suggested that CEO duality, size of the board, Debt to Equity (DTE) rationale and Debt to Asset (DTA) ration negatively impacted firm performance. However, the findings indicated that the audit committee positively influenced financial performance of companies.

Keywords: GCC, Corporate Governance , Risk Behaviour, And Capital Structure , financial performance

DOI: 10.7176/RJFA/14-4-01

Publication date: February 28^th 2023