Author(s): Mohammad Yousef Alghadi, Ayed Ahmad Khalifah Alzyadat
The aim of this study is to investigate the nexus between the mechanisms of corporate governance (family ownership, state ownership, board size, CEO duality and CEO gender) on leverage in Saudi Arabia. Financial data from 100 listed firms at Saudi Stock Exchange (TADAWUL) for the period of 9 years 2011 to 2019 was extrapolated from the companies listed on Saudi Stock Exchange Market (Tadawul), resulting in the final sample of 900 firms-year observations. Moreover, these studies use profitability as control variable. By using generalized least square random-effect (GLS), the multiple regression analysis revealed a negative relationship between family ownership, state ownership and board size on leverage, while CEO duality and CEO gender positive and significant association with level leverage. In addition, family ownership and size of board did not have a direct effect on level leverage in Saudi Arabia. The findings suggest the crucial role of corporate governance in leveraging and minimizing agency conflict. This study also paves the way for further investigations on leverage in the context of other nations that are also facing a dearth of research in this study area. Additionally, there is a prevailing need for developing countries to demonstrate improved compliance with international governance standards