New Insights to Investigate The Impact of Internal Control Mechanisms on Firm Performance: A Study in Oman
Tariq Tawfeeq Yousif Alabdullah(1*)(1) Discipline of Accounting, College of Administration and Economics, University of Basrah, Iraq
(*) Corresponding Author
Abstract
Based on what has been done in accounting, economic and finance literature, the key aim of the this research is to analyze the link among the ownership’s characteristics variables and market share (M-Share) to represent firm financial performance in financial firms listed in Oman in its Stock Exchange market. The present research conducts regression model to show the effect of control mechanisms on market share (M-Share) that represented by firm performance with determining other control variables. We used panel data of Muscat Stock Exchange financial firms over the period 2011-2019. We found that foreign ownership (F-Own) and management ownership variables affected by positively by market share (M-Share), where market share (M-Share) reflects firm financial performance as dependent variable in the current research. Also we utilized firm size as a control variables and the findings show that there is a positive impact on performance where the industry has a negative impact on performance. The implication of this research from practical perspective suggests that good control mechanisms is also important for all kind of firms and this also must enhance the interest of stakeholders to the firm. The Originality and value of the present research from the perspective of GCC countries is to examine the link between ownership characteristics and market share (M-Share) as indicator of firm performance. So, the current research adds to the literature and studies in emerging markets of GCC by investigating the link with such an insight so that it enhances the strengths of the existing literature review that deals with such a link. The findings of the present research link will be approximately useful to the authorities, regulatory bodies, policymakers and also for stakeholder.
Full Text:
PDFReferences
Abushammala, S. N., Alabdullah, T. T. Y., & Ahmed, E. R. (2015). Causal Relationship between Market Growth and Economic Growth. Comparison Study. European Journal of Business and Management 7(33).
Ahmed, E. R., Islam, M. A., Alabdullah, T. T. Y., and bin Amran, A. (2018c). Proposed the pricing model as an alternative Islamic benchmark. Benchmarking: An International Journal 25, 2892–2912. doi: 10.1108/bij-04-2017-0077.
Ahmed, E. R., Alabdullah, T. T. Y., Ardhani, L., & Putri, E. (2021). The Inventory Control System’s Weaknesses Based on the Accounting Postgraduate Students’ Perspectives. Journal of Accounting and Business Education, 5(2), 1-8.DOI: http://dx.doi.org/10.26675/jabe.v5i2.19312.
Ahmed, E. R., Alabdullah, T. T. Y., Shaharudin, M. S., & Putri, E. (2020). Further Evidence on the Link between Firm’s Control Mechanisms and Firm Financial Performance: Sultanate of Oman. Journal of Governance and Integrity, 4(1), 1-6.
Ahmed, E. R., Alabdullah, T. T. Y., Thottoli, M. M., & Maryanti, E. (2020). Does Corporate Governance Predict Firm Profitability? An Empirical Study in Oman. The International Journal of Accounting and Business Society, 28(1), 127-143.
Ahmed, E. R., Alabdullah, T. Y., Islam, M. A., & Asmar, M. (2014) “Sukuk Legitimacy: A New Measurement Based on Content Analysis” 16th Malaysian Finance Association Conference in Sasana Kijang Central Bank of Malaysia, Kuala Lumpur, June 4-6, 2014.
Ahmed, E. R., Aiffin, K. H. B., Alabdullah, T. T. Y., & Zuqebah, A. (2016). Zakat and Accounting Valuation Model. Journal of Reviews on Global Economics, 5, 16-24.
Ahmed, E. R., Islam, M. A., and & Alabdullah, T. T. Y. (2017). The moderating role of Shariah supervisory board on sukuk pricing benchmark. International Journal of Excellence in Islamic Banking and Finance 6.
Ahmed, E. R., Islam, M. A., Alabdullah, T. T. Y., & Amran, A. B. (2019). A qualitative analysis on the determinants of legitimacy of sukuk. Journal of Islamic Accounting and Business Research, Vol. 10 No. 3, pp. 342-368.
Ahmed, E. R., Islam, A., Zuqibeh, A., & Alabdullah, T. T. Y. (2014). Risks management in Islamic financial instruments. Advances in Environmental Biology, 402-406.
Ahmed, E. R., Alabdullah, T. T. Y & Shaharudin, M. S. (2020). Approaches to Control Mechanisms and Their Implications for Companies’ Profitability: a Study in UAE. Journal of accounting Science, Vol. 4, no. 2, pp. 11-20.
Ahmed, E. R., Rahim, N. F. A., Alabdullah, T. T. Y., & Thottoli, M. M. (2019). An examination of social media role in entrepreneurial intention among accounting students: a SEM study. Journal of Modern Accounting and Auditing, 15(12), 577-589.
Ahmed, E. R., Islam, M. A., & Alabdullah, T. T. Y. (2014). Islamic sukuk: Pricing mechanism and rating. Journal of Asian Scientific Research, 4(11), 640.
Ahmed, E. R., Alabdullah, T. T. Y., Amran, A., & Yahya, S. B. (2018). Indebtedness Theory and Shariah Boards: A Theoretical Approach. Global Business and Management Research, 10(1), 127-134.
Alabdullah, T. T. Y. (2021). Management accounting insight via a new perspective on the risk management - companies’ profitability relationship. International Journal of Intelligent Enterprise 7, In press.
Alabdullah, T. T. Y., Ahmed, E. R., and Nor, M. I. (2020). The World Declining Economy And Coronavirus Pandemic: Systems Should Be Continued. Russian Journal of Agricultural and Socio-Economic Sciences 102, 89–96. doi: 10.18551/rjoas.2020-06.11.
Alabdullah, T. T. Y. (2019). Management Accounting and Service Companies' Performance: Research in Emerging Economies, Australasian Accounting, Business and Finance Journal, 13(4), 100-118.doi:10.14453/aabfj.v13i4.8.
Alabdullah, T. T. Y. (2021). Ownership Structure and the Failure or Success of Firm Performance: Evidence from Emerging Market; Cross-sectional Analysis. International Journal of Business and Management Invention, 10(8).
Alabdullah, T. T. Y. (2017). Compensation committee, company board attributes, and company performance: The moderating effect of leadership position. Paper presented at the 2017 Wei International Academic Conference Proceedings, July 24-27, 2017, Business and Economics.
Alabdullah, T. T. Y. (2016d). Agency Theory Perspective: A Quantitative Study Of Accounting Performance Measures In Emerging Economies. ICTE Proceedings, New York.
Alabdullah, T. T. Y. (2016a). Are Board Size And Ownership Structure Beneficial In Emerging Markets’ Firms? Evidence from Jordan. International Journal of Management & Information Systems (IJMIS), 20(3), 87-94.
Alabdullah, T. T. Y., Ahmed, E. R., & Nor, M. I. (2018). New Ideas from Management, Finance and Accounting Perspective: The Research for A New Link Between A Company’s Outcome and Risk Management. 5th International Conference on New Ideas in Management, Economics and Accounting.
Alabdullah, T. T. Y. (2016c). Corporate Governance from The Perspective of The Past and The Present and The Need to Fill an International Gap. Risk Governance & Control: Financial Markets & Institutions, 6(4).
Alabdullah, T. T. Y. (2016b). The Performance of Companies and The Board’s Characteristics From the New Perspective of Manipulation Avoidance. Corporate Ownership & Control, 13(4), 279-286.
Alabdullah, T. T. Y., Yahya, S., & Ramayah, T. (2014b). Corporate Governance Development: New or Old Concept? European Journal of Business and Management, 6(7), 312-315.
Alabdullah, T. T. Y., Yahya, S., & Ramayah, T. (2014). Corporate Governance Mechanisms and Jordanian Companies' Financial Performance. Asian Social Science, 10(22), p247.
Alabdullah, T. T. Y., Alfadhl, M. M. A., Yahya, S., & Rabi, A. M. A. (2014). The Role of Forensic Accounting in Reducing Financial Corruption: A Study in Iraq. International Journal of Business and Management, 9 (1), 26.
Alabdullah, T. T. Y., Ahmed, E. R., & Ahmed, R. R. (2021). Organization features and profitability: Implications for a sample of Emerging Countries. Journal of Accounting and Business Education, 5(2), 43-52.DOI: http://dx.doi.org/10.26675/jabe.v5i2.16351.
Alabdullah, T. T. Y., Ahmed, E. R., Mohammed Almashhadani, M, Yousif S, Almashhadani H, Almashhadani R, Putri, E (2021). How Significantly to Emerging Economies Benefit From Board Attributes and Risk Management in Enhancing Firm Profitability? Journal of Accounting Science 5(2).
Alabdullah, T. T. Y., Ahmed, E. R., (2020). A cross-sectional analysis of the influence of corporate governance features on the organizational outcomes: An assessment. International Islamic University Chittagong. 17(2). P.P 6-26.
Alabdullah, T. T. Y., Yahya, S., Nor, M. I., & Majeed, F. Q. (2016). An Investigation of Corporate Governance from A New Perspective: Examining the Financial Performance of Companies and The Impact of Executive Turnover. Corporate Board: Role, Duties & Composition, 12(1).
Alabdullah, T. T. Y., Ahmed, E. R. (2019). Board Diversity and Disclosure of Corporate Social Responsibility Link: A Study in Malaysia. Journal of Adv Research in Dynamic & Control System, 11(11).
Alabdullah, T. T. Y., Ahmed, E. R., & Muneerali, M. (2019). Effect of Board Size and Duality on Corporate Social Responsibility: What has Improved in Corporate Governance in Asia?. Journal of Accounting Science, 3(2), 121-135.
Alabdullah, T. T. Y. (2018). The relationship between ownership structure and firm financial performance. Benchmarking: An International Journal, 25(1), 319-333.
Alabdullah, T. T. Y., Laadjal, A., Ries, E., & Al-Asadi, Y. A. A. (2018). Board Features and Capital Structure in Emerging Markets. Journal of Advanced Management Science, 6 (2).
Alabdullah, T. T. Y., Nor, M. I., & Ahmed, E. R. (2018). The determination of firm performance in emerging nations: Do board size and firm size matter? Management, 5(3), 57-66.
Alabdullah, T. T. Y & Ahmed, E. R. (2020). Audit Committee Impact on Corporate Profitability in Oman Companies: an Auditing and Management Accounting Perspective. Riset Akuntansi dan Keuangan Indonesia, Vol. 5, no. 2, pp. 121-128.
Alabdullah, T. T. Y., Ahmed, E. R., & Nor, M. I. (2019). Do board characteristics provide more enhancement for firm financial performance? A corporate governance perspective. New challenges in corporate governance: Theory and practice (pp. 89-91). https://doi.org/10.22495/ncpr_25.
Alabdullah, T. T. Y. and Ahmed, E. R. (2018). Corporate Governance: To What Extent it is important in the Arab Countries. International Journal of Science and Research 7.
Alabdullah, T. T. Y & Ahmed, E. R. & Abushammala, S. (2020). Growth of Companies: Empirical Study of the Companies Listed in Developing Economies. Journal of accounting Science, Vol. 4, no. 2, pp. 1-10.
Alfadhl, M. M. A. F. and Alabdullah, T. T. Y. (2013). Determinants of the Managerial Behavior of Agency Cost and Its Influential Extent on Performance: A Study in Iraq. International Journal of Humanities and Social Science, 3–3.
Alfadhl, M. M. A., Alabdullah, T. T. Y. (2016). Agency Cost and Management Behavior: The Role of Performance as a Moderator. International Journal of Science and Research (IJSR), 5(1), 1858-1864.
Almashhadani, M. (2021). How Dose Corporate Governance Leverage Organizational Performance: A Survey With Suggestions And Notes For Further Research. Russian Journal of Agricultural and Socio-Economic Sciences 3(111), 3–9.
Almashhadani, M. (2020). Testing the effecting elements of R&D engineer’s inventively in design industrialization Sector: A study in Singapore. Journal of Information and Computational Science,10(5).
Essia Ries, A. (2014). Islamic Sukuk: Pricing mechanism and rating [Електронний ресурс]/Essia Ries Ahmed, Md. Aminul Islam, Tariq Tawfeeq Yousif Alabdullah. Journal of Asian Scientific Research, (4), 11.
Nor, M. I., Masron, T. A., & Alabdullah, T. T. Y. (2020). Macroeconomic fundamentals and the exchange rate volatility: empirical evidence from Somalia. SAGE Open, 10(1), 2158244019898841.
Aslam, E., Haron, R., & Tahir, M. N. (2019). How director remuneration impacts firm performance: An empirical analysis of executive director remuneration in Pakistan. Borsa Istanbul Review.
Baber, W. R., Liang, L., & Zhu, Z. (2012). Associations between internal and external corporate governance characteristics: Implications for investigating financial accounting restatements. Accounting Horizons, 26(2), 219-237.
Chen, J., Ezzamel, M., & Cai, Z. (2011). Managerial power theory, tournament theory, and executive pay in China. Journal of corporate finance, 17(4), 1176-1199.
Daspit, J. J., Chrisman, J. J., Sharma, P., Pearson, A. W., & Mahto, R. V. (2018). Governance as a source of family firm heterogeneity: Elsevier.
Fu, Y. (2019). The value of corporate governance: Evidence from the Chinese anti-corruption campaign. The North American Journal of Economics and Finance, 47, 461-476.
Gonenc, H., & Zengin-Karaibrahimoglu, Y. (2019). Towards a Mandatory Corporate Governance Regime: Empirical Evidence from Turkey Ethics and Sustainability in Accounting and Finance, Volume I (pp. 153-186): Springer.
Guthrie, J., Parker, L. D., Dumay, J., & Milne, M. J. (2019). What counts for quality in interdisciplinary accounting research in the next decade: A critical review and reflection. Accounting, Auditing & Accountability Journal, 32(1), 2-25.
Holmstrom, B. (1979). Moral hazard and observability. Bell journal of Economics, 10(1), 74-91.
Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. The American economic review, 76(2), 323-329.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.
Kazi, A. G., Arain, M. A., & Sahetiya, P. D. (2018). Corporate Governance and Firm Performance Nexus: A Case of Cement Industry of Pakistan. International Journal of Entrepreneurial Research, 1(1), 1-6.
Mai, A., Bilbard, L., & Som, A. (2009). Conducting business in Vietnam: A brief for international managers. Global Business and Organizational Excellence, 28(3), 55-78.
Murtaza, S., & Azam, I. (2019). The Relationship between Ownership Structure and Capital Structure. SEISENSE Journal of Management, 2(4), 51-64.
Sahut, J.-M., & Teulon, F. (2017). What are the determinants of dividend policies? A new perspective in Emerging Markets. Economics Bulletin, 37(3), 2234-2246.
Setia‐Atmaja, L. Y. (2009). Governance mechanisms and firm value: The impact of ownership concentration and dividends. Corporate Governance: An International Review, 17(6), 694-709.
Wei, Z., Xie, F., & Zhang, S. (2005). Ownership structure and firm value in China's privatized firms: 1991–2001. Journal of Financial and Quantitative Analysis, 40(1), 87-108.
Wooldridge, J. M. (2015). Introductory econometrics: A modern approach: Nelson Education.
Yeh, C. M. (2019). Ownership structure and firm performance of listed tourism firms. International Journal of Tourism Research, 21(2), 165-179.
Article Metrics
Abstract view(s): 1973 time(s)PDF: 1613 time(s)
Refbacks
- There are currently no refbacks.