Abstract
This paper investigates the impact of board structure on the firms' performance in Saudi Arabia. The variables which measure the corporate governance structure are the board composition, and board size using regression-based analysis. The sample of study covered all listed firms in T adawul i.e., 1 59 fi rms l isted i n t he S audi S tock Exchange. This s tudy's findings demonstrate that non-executive directors have a positive effect on all measurements of financial performance, indicating that the higher the percentage of non-executive directors, the more improved the process of independent decision-making i s, w hich o verflows i nto t he fi rm's performance overall. This shows that higher numbers of non-executive board members resulted in improved and more effective decision making, thus impacting positively on the performance of the board and thus, overall company performance also. These findings are in line with agency theory. Moreover, these results complement agency theory. Lastly, the size of the board was identified t o h ave a p ositive a nd s ignificant i mpact o n t he performance of the company.
Disciplinary: Corporate Governance, Business Management. (C)2021 INT TRANS J ENG MANAG SCI TECH.