المجلة الدولية لنشر البحوث والدراسات

International Journal of Research and Studies Publishing

المجلة الدولية لنشر البحوث والدراسات
القائمة الرئيسية

Determinants of Financial Performance in Leading Saudi Companies (Evidence from Key Economic Sectors)

By: Talal Humaidi Alaliani (1), Dr. Hani Fayhan Albogami (2)

Researcher in the Accounting Department, Faculty of Business, Jeddah University, Saudi Arabia (1)
Head of the Accounting Department, College of Business, Jeddah University, Saudi Arabia (2)


Abstract:

The study aims to understand the relationship between productivity, growth rate, leverage, current ratio, current asset turnover, company age, and sector type and company performance measured by Return on Equity (ROE). Such an understanding may provide valuable insights for investors and managers regarding the factors that can influence corporate performance and contribute to achieving higher financial returns for shareholders. This analytical study was conducted to measure the impact of several variables on the performance of Saudi companies. The study focused on examining the effects of productivity, growth rate, leverage, current ratio, current asset turnover, and company age on financial performance as measured by Return on Equity (ROE). Multiple linear regression analysis was used to analyze the data. The study examined a sample of private sector companies in the Kingdom of Saudi Arabia representing seven different economic sectors. These sectors include healthcare, telecommunications, oil, dairy products, banking, insurance, and food industries. The selected companies represent leading firms within their respective sectors. The results indicated that company growth rate, company age, and the telecommunications sector were positively associated with financial performance and were statistically significant. In contrast, leverage, productivity, current ratio, and current asset turnover were not found to have statistically significant effects on financial performance within the study sample. In light of the research findings, the researchers presented useful recommendations for managers, investors, and decision-makers in Saudi private sector companies.


Keywords:

Financial Performance, Factors Affecting Financial Performance, Return on Equity (ROE).

DOI

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About the Authors

Researcher in the Accounting Department, Faculty of Business, Jeddah University, Saudi Arabia (1)
Head of the Accounting Department, College of Business, Jeddah University, Saudi Arabia (2)

References

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المجلة الدولية لنشر البحوث والدراسات

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