In light of the current state of the economy, the question arises as to whether or not risk management committees and board characteristics contribute to the performance of companies in Saudi Arabia

Abstract

The purpose of this study was to explore the impact that corporate governance measures have on the profitability of companies that are listed on the Saudi Stock Exchange (SSE). The technique consisted of collecting data from the SSE for the financial year 2021, and the research model consisted of sixty different firms. The size of the board of directors, the number of times the board met, and the presence of risk management techniques were all independent factors that were investigated in this study. Return on assets (ROA) served as the dependent variable, and it was the performance of the corporation that was being measured. For the purpose of attractive the estimation of the association between the autonomous variables and the dependent variable, the study additionally included a control variable, which was the size of the corporation. The results of the study revealed that the performance of Saudi firms was improved when the board size was increased to a greater number of members. Furthermore, the deployment of risk management procedures and an increase in the frequency of board meetings both displayed favorable benefits on the performance of the corporation. This research makes a significant contribution by investigating the fact that the performance of SSE-listed firms is directly prejudiced by the size of the board, the frequency of board meetings, and the risk management methods that are used. The inventiveness of the study resides in the fact that it investigates these particular corporate governance systems in great detail, as well as the association between those procedures and return on assets