The Link between Internal Control Mechanisms and Corporate Performance: A study for a New Perspective to Support Economic Growth

Authors

  • Tariq Tawfeeq Yousif Alabdullah University of Basrah

Keywords:

Emerging nations, performance, board diversity, board size, independency, Firm Size; Capital Structure; Dividend Policy., non-financial firms

Abstract

Through recent developments that have been overlooked in the earlier literature, this research seeks to show a new link that might be involved in the accounting, management, and economic disciplines. The current study examines the relationships between all the independent variables in relation to the study's introduction of board diversity as defined by gender, board size, and independent managers on the board, as well as their effects on the expansion of businesses in emerging markets, particularly in the context of Oman. In order to evaluate data for the 30 industrial and 30 services companies that are part of the industrial and service sectors (non-financial sector) listed in the Muscat Securities Market (MSM) for the year 2021, the research used multiple regression approaches. The results of this research indicated that Muscat's market share of non-financial companies is negatively correlated with board size. The current research, on the other hand, demonstrated that independent boards, board size, as well as board diversity all significantly and favorably affect market share. Additionally, firm size, a control variable, has little bearing on the market share of non-financial companies. The existing work introduces evidence that interacts with different emerging markets' parties, for instance, academics, policymakers, and most business leaders. It contributes to the Middle East's literature review as the first research that has been done to investigate board diversity in its connection with the growth (expressed by market share) of non-financial companies. Thus, this research introduces a significant view insight into the global argument on the impact of board diversity on the market share that also represents the company's performance.

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Published

2023-10-06

How to Cite

Alabdullah, T. T. Y. (2023). The Link between Internal Control Mechanisms and Corporate Performance: A study for a New Perspective to Support Economic Growth. The International Journal of Accounting and Business Society, 31(2). Retrieved from https://www.ijabs.ub.ac.id/index.php/ijabs/article/view/776