Corporate Governance, Capital Structure and Corporate Performance: Evidence from GCC Countries

Abstract

This study investigates the effect of ownership structure and concentration on firm performance for 203 companies from five GCC countries (Qatar, Kuwait, Saudi Arabia, Bahrain and Oman), using a panel data analysis for the period 2000–2010. The study further examines the effects of financial leverage and risk. Our results indicate that ownership structure affects firm performance in GCC countries. Government ownership affects firm performance ROA while foreign and institutional ownership are found not to be significant. The results also show that ownership concentration affects firm performance positively and significantly. A firm's capital structure has no effect on performance. Furthermore, the study concludes that age and size have a positive and significant impact on corporate performance.