Open AccessMajor shareholders and the effectiveness of the management’s advising and monitoring functions: Empirical study
Author(s) -
Khaled Salmen Aljaaidi,
Omar Ali Bagais
Publication year - 2021
Publication title -
accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.175
H-Index - 5
eISSN - 2369-7407
pISSN - 2369-7393
DOI - 10.5267/j.ac.2021.4.015
Subject(s) - shareholder , accounting , business , audit , empirical research , finance , corporate governance , philosophy , epistemology
This study examines the connection of major family shareholders with management’s effective attributes, namely; board size and board meetings as an interaction term among 464 manufacturing listed companies in the setting of Saudi Arabia for the period 2012-2019. The pooled OLS regression result indicated that the major family shareholders were associated negatively with management’s effectiveness. The main result documented by this study is of utmost importance to policy makers, regulators, companies, and auditors in Saudi Arabia on understanding the extent to which the major shareholders influence the degree of management’s effectiveness.