1Department of Accounting, College of Business Administration University of Ha'il, Kingdom of Saudi Arabia
2Department of Accounting, College of Business Administration University of Ha'il, Kingdom of Saudi Arabia
3Department of Accounting, College of Business Administration University of Ha'il, Kingdom of Saudi Arabia
4Department of Accounting, College of Business Administration, University of Ha'il Kingdom of Saudi Arabia
5Department of Accounting, Faculty of Administrative SciencesUniversity of Aden, Aden, Yemen, hasan.bamahros@gmail.com
6Accounting DepartmentIbb University, Ibb, Yemen
7Kingdom of Saudi Arabia Accounting DepartmentTaiz University, Taiz, Yemen
Online published on 30 June, 2022.
This study used a dataset of 219 listed firm years on the Tadawul Stock Exchange in 20182020, to examine how family ownership concentration, proxied by the family board shareholding, board composition and firm attributes, impact board compensation in Saudi Arabia. The research proves that the family board does not demand excessive director compensation, from minority shareholders, by expropriating them. However, it was interesting to note that this current work offers are in line with entrenchment effect theory, as it documentsthat family control (family with higher share proportion) calls for a high director compensation. The finding of the research implies that ownership concentration in the family board entrenches the level of the board compensation.
Board of Directors Characteristics, Board Compensation and Family Control
