THE INFLUENCE OF CORPORATE GOVERNANCE ON THE DIVIDEND DECISIONS OF SAUDI ARABIAN FIRMS LISTED ON THE STOCK EXCHANGE

Abstract

This study investigates the association between corporate governance procedures and dividend decisions of Saudi Arabian companies listed on the stock exchange between 2015 and 2020. The study uses yearly financial reports to collect data on different corporate governance factors, including audit commission independence, audit commission size, audit board experience, audit board meeting, CEO duality, board size, and business size. The findings indicate that audit committee experience, CEO duality, and panel size strongly correlate with dividend decisions. The results indicate that a well-experienced audit committee, independent roles for the CEO and chairman of the board, and an appropriately sized board are significant determinants in the dividend decisions of Saudi Arabian companies. To make reasonable judgments, it is recommended that companies emphasize the composition and experience of their audit committees and the separation of the duties of the CEO and chairman of the board.