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The Compliance of Corporations to the Disclosure Requirements of Corporate Governance Regulations in Saudi Arabia: A Survey Study

Journal of Administrative and Economics Science

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Title The Compliance of Corporations to the Disclosure Requirements of Corporate Governance Regulations in Saudi Arabia: A Survey Study
 
Creator Elmohtaz, Dr. Ihsan Saleh
 
Description The current research aims to investigate to what extent Saudi corporations disclosure complies with the corporate governanceregulations issued by the Capital Market Authority on 21/10/1427 AH (corresponding to 21/11/2006). The research examined 52 out of 77companies listed in the Saudi capital market at the release time of the corporate governance regulation. The study reviewed the disclosure ofgovernance issues in the published reports of the Board of Directors issued in the financial reports in 2006 and 2007. The review includedmany requirements of the corporate governance regulations such as: the composition of the board of directors and its members’classification, the number and names of corporations in which one person acts as a member of its board of directors, a brief description of thejurisdictions and duties of the board's main committees such as the audit committee, the nomination and remuneration committee; indicatingthe names of committees’ members and chairmen, the aggregate number of their respective meetings, the compensation paid to each memberof the board of directors and the highest ranked five of executives, in addition to the executive manager and financial manager in eachcorporation. The study also investigated other requirements included in the corporate governance regulation.The results of the study revealed considerable variations among the Saudi companies regarding their disclosure levels, where fewcompanies showed a compliance with corporate governance requirements. The results also revealed slight improvements in the disclosurelevels have been observed in 2007 comparing with 2006. Such low disclosure levels could be due to the recent and short age of regulation,the lack of interest of some officials in the culture of disclosure and informing the beneficiaries of what is going on inside; as well as theabsence of the imposed sanctions in case of compliance failure. The study recommends to do further research in the area of corporatedisclosure in correspondence with the requirements of corporate governance regulation, which expected to enhance the Saudi corporationperformance to meet stakeholders’ expectations.
 
Publisher Qassim University Academic Publishing and translation
 
Contributor —
 
Date 2008-04-03
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://publications.qu.edu.sa/ojs/index.php/economic/article/view/128
 
Source Journal Of Administrative And Economics Science; Vol 2, No 1
 
Language eng
 
Relation http://publications.qu.edu.sa/ojs/index.php/economic/article/view/128/125