Ownership and Firm Performance in Gulf Countries - Dissertation Example

Download file to see previous pages However, in the study, it was apparent that businesses owned by rulers like potentates and kings in the GCC had a positive association with market performance (Karam, 2010). The explanation put forward by Karam was that most of the family-owned businesses did not have the right stewardship and corporate governance arrangements. On the other hand, the presence and authority of the kings and other rulers in the GCC enabled the leaders to wield a high degree of authority over the businesses they controlled.

This shows that there is a distinct system of corporate governance and control in the GCC. Another interesting discovery put forward by Binder (2012) indicates that there are some families in the GCC nations whose businesses do well. These families are known to practice extremely strong control systems and structures which continue to earn them results that enable them to expand to other nations and countries around the globe.

This shows that corporate governance has varying results for various businesses with different ownership structures in the GCC nations. This study will therefore address the problem of evaluating the components and the elements of corporate governance and its impact on businesses in the GCC. This study is propitious because it provides insight into the essential role that corporate governance and control play in the performance and results of businesses and entities in different nations.

1.3 Research Objectives
As identified above, the research will focus on examining corporate governance's impact on corporate entities' performance. The fundamental aim of the research will be to ascertain “how ownership structures influence governance mechanisms in Gulf Countries and whether it affects the firm performance or not”. In order to attain this end, the following objectives will be explored in the research:

1. A critical evaluation of the general relationship between ownership structures, governance systems, and performance.
2. A review of the relationship between ownership control structures and modern corporate structures in the GCC.

3. An analysis of corporate governance structures like board size, the ratio of NEDs, and independent directors on GCC boards and business entities in the Gulf Countries.
4. An assessment of the corporate governance structures including size, the ratio of NEDs and independent directors on bards, and business performance in the GCC.

Thus, the research will use various tools and techniques to examine these four questions to collectively define the relationship between fundamental ownership systems, corporate governance, and the performance of companies in the GCC. The end will be to conclude on the actual contribution and the actual impact that corporate governance has on firm performance and firm results in GCC nations.

The results will give way for the prediction of whether there is a strong relationship between the normal firm in the GCC and corporate governance. This will also have an implication on ownership structures and the type of corporate governance choices that businesses employ in the GCC region.

1.4 Scope of Study
Their research will be conducted through a blend of secondary research and empirical study which will involve the collection of primary data and the analysis of the data. The research will involve a critical analysis of various findings to draw an empirical conclusion on the core and fundamental findings of the study. ...Download file to see next pages Read More