The Determinants of the financial policies: Evidence from KSA

This book examines the financial policies in the emerging markets, with a particular emphasis on Saudi Arabia. Saudi Arabia market in general, has witnesses a huge growth over the past decade. Yet much remain to be known about the particulars of the legal practices within the institutional constrains of the national business environment. Therefore, this study considers the corporate government practices and the ownership structure of the Saudi firms in determining the financial policies decision. Finally the study will fill the knowledge gab in answering the following questions: What are the firm specific factors that affect the financial policies decisions? What are the corporate governance factors that affect the financial policies decisions? What are the ownership structure factors that affect the financial policies decisions? The findings of this study are related to firm specific factors, corporate governance factors, and ownership structure that affect the three financial policies addressed in this thesis. Firstly, in the determinants of capital structure we find that firm size, tangibility, family ownership and board size are positively associated with leverage.