THE IMPACT OF INSTITUTIONAL FACTORS ON THE RELATIONSHIP BETWEEN GOVERNANCE MECHANISMS AND CORPORATE FINANCIAL PERFORMANCE

Authors

  • Zain Al-Din Mohammed Hassan Department of Accounting, College of Administration&Economics, University of Basrah
  • Suhail Al-Tamimi Department of Accounting, College of Administration&Economics, University of Basrah

DOI:

https://doi.org/10.18623/rvd.v23.5417

Keywords:

Corporate Governance, Institutional Factors, Financial Performance

Abstract

The research aimed to evaluate the impact of governance mechanisms (board size, meetings, and ownership concentration) on financial performance (return on assets and return on equity), as well as to demonstrate the impact of institutional factors (laws and regulations) on the relationship between governance mechanisms and the financial performance of UAE companies. It was applied to a sample of 7 industrial companies listed on the UAE stock market. Therefore, data were collected from the annual reports of these companies for the period from 2016 to 2024. After conducting the analysis and testing the hypotheses using statistical programs (PLS, Path Analysis, SPSS), the results showed that board meetings and ownership concentration had a direct positive impact on financial performance indicators (ROA, ROE), while board size did not prove to have a positive impact on performance. The results also indicated that institutional factors represented by laws and regulations have a positive mediating role in explaining the relationship between governance mechanisms and the financial performance of UAE companies, which indicates the companies' commitment to the laws and regulations in force in the country.

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Published

2026-03-17

How to Cite

Hassan, Z. A.-D. M., & Al-Tamimi, S. (2026). THE IMPACT OF INSTITUTIONAL FACTORS ON THE RELATIONSHIP BETWEEN GOVERNANCE MECHANISMS AND CORPORATE FINANCIAL PERFORMANCE. Veredas Do Direito, 23(5), e235417. https://doi.org/10.18623/rvd.v23.5417

Issue

Vol. 23 No. 5 (2026): Veredas do Direito, v. 23, n. 5 2026

Section

Articles

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