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Corporate governance, ownership structure and firms’ financial performance: insights from Muscat securities market (MSM30)

Abdelbaset Queiri (Oman Tourism College, Seeb, Oman)
Araby Madbouly (Muscat College, Muscat, Oman)
Sameh Reyad (Ahlia University, Manama, Bahrain)
Nizar Dwaikat (Arab Open University, Palestine Branch, Palestine)

Journal of Financial Reporting and Accounting

ISSN: 1985-2517

Article publication date: 26 February 2021

Issue publication date: 29 July 2021




The purpose of this study is to investigate the relationship between selected board characteristics and ownership elements and the performance of firms listed in the Muscat Securities Market (MSM30). The examination focused on how the firm financial performance was affected by the board size, the number of board meetings and the ratio of the independent board of directors along to the ownership concentration types (i.e. institutional, state and concentrated individual ownership).


Data were extracted from the annual reports available online on the MSM30 website over a period of seven years (2009–2015). The sample consisted of 14 firms belonging to the non-financial sector. The data were of a balanced type and there were 98 observations. The analysis was conducted using the ordinary least square in STATA with the use of the robustness technique of standard error.


The findings of this study provide evidence that the selected elements for board characteristics and ownership influence firm performance. Nevertheless, such influence has its interpretation that differs to some extent from other securities markets in the developing countries. For instance, the ratio of the independent board of directors, the number of board director’s meetings, state ownership and concentrated individual ownership were inversely affecting the firm performance. However, institutional ownership and board size were found to have a positive effect on firm performance.


Studies on the influence of corporate governance and ownership structures in the context of Oman are still scarce. MSM30 received little attention, even though such an index encompasses the most liquid and the most profitable firms. MSM30 is an important index for investors in Oman looking for capital gains. Accordingly, this present study contributes to the knowledge body by providing new findings related to Oman and compares it with the other markets within Gulf Council Countries (GCC) and around the world. This will provide more understanding of the Omani context. Moreover, the authors anticipate that the outcomes of this research, which so far is the most comprehensive study in the Omani context in terms of the impact of corporate governance and ownership structure on firm financial performance can significantly shape corporate governance discourse, practices and policies in Oman, in particular, and in other GCC countries in general, to improve financial performance and corporate sustainability.



Queiri, A., Madbouly, A., Reyad, S. and Dwaikat, N. (2021), "Corporate governance, ownership structure and firms’ financial performance: insights from Muscat securities market (MSM30)", Journal of Financial Reporting and Accounting, Vol. 19 No. 4, pp. 640-665.



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