CORPORATE GOVERNANCE MECHANISMS, FINTECH COMPANIES, FINANCIAL PERFORMANCE IN KINGDOM OF SAUDI ARABIA USING THE BACKWARD REGRESSION METHOD

Authors

  • Abdullah Hamoud Ali Seraj Department of Management, College of Business Administration, King Faisal University, Saudi Arabia.
  • Jehad Abdallah Atieh Afaneh Department of Management, College of Business Administration, King Faisal University, Saudi Arabia.
  • Mahmoud Abdul Aleem Elkholy Accounting Department, faculty business administration, Taibah University, Saudi Arabia.
  • Abdalla Ahmed Quantitative Methods Department, School of Business Collage, King Faisal University, Saudi Arabia.
  • Sheriff Yousif Hamid Ahmed Department of Management, College of Business Administration, King Faisal University, Saudi Arabia.
  • Ahmed Faek Elgendy Business Administration Department, Faculty of Commerce, Benha University, Benha, Egypt

Keywords:

Corporate governance Mechanisms, Insider-Shareholding, Independence Board, Audit Committee, CEO Duality, financial performance, backward regression, and fintech companies's

Abstract

The significance of the Fintech industry has grown progressively to increase the competitive advantage of the organizations. Corporate governance is important in the fintech industry as it ensures transparency, accountability, and strategic oversight, fostering trust and sustainable growth in a rapidly evolving sector. Therefore, this study aimed to test the impact of corporate governance mechanisms on the financial performance of fintech companies in Saudi Arabia. Quantitative data was collected from 134 employees of fintech companies in Saudi Arabia by employing a convenient sampling technique. Multiple regression predicted findings indicated that all corporate governance mechanism indicators positively and significantly influence to financial performance of fintech companies in Saudi Arabia. The study with these findings contributed significant findings in the context of literature by affirming its positive impact on financial performance, particularly in the fintech industry which highlights the relevance of governance mechanisms in emerging economies like Saudi Arabia. Practically, the study also contributed that fintech companies in Saudi Arabia should strengthen corporate governance practices to enhance financial performance which is ensuring compliance, transparency, and strategic oversight to increase investor confidence and sustainable growth.

Downloads

Published

2024-12-03

Issue

Vol. 16 No. 3 (2024): International Journal of Economics and Financial Studies (IJEFS)

Section

Original Article