Understanding the Influence of Managerial Decision-Making on Financial Indicators: Insights From Saudi Arabian Entrepreneurs in Various Industries

Naila Iqbal Q (), Senthil Kumar J, Satheesha G and Devyani R
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Naila Iqbal Q: Princess Nourah Bint Abdulrahman University
Senthil Kumar J: GITAM School of Business-GITAM (Deemed to Be University)
Satheesha G: International Institute of Business Study
Devyani R: Graphic Era Deemed to Be University

Journal of the Knowledge Economy, 2025, vol. 16, issue 5, No 29, 16394-16423

Abstract: Abstract Financial performance (FP) is an important factor of any business, with the primary objective of maximizing wealth and profits for investors, managers, and creditors. The efficiency of a business is estimated using ratios of finance and support decision-making for investments or funding, ensuring continuous performance. This research’s primary objective is to determine the risk elements associated with managerial decision-making that affect the performance of financial enterprises (FE) in Saudi Arabia. The investigation used a sample of 100 non-financial listed companies and 70 financial listed companies on the Saudi Stock Exchange to accomplish the study’s objective. The information for the chosen company was taken from its annual reports, financial statements, and the Saudi Stock Exchange Tadawul website, and it covered the years 2013 through 2022. The study employed SPSS software to perform data and correlation analyses. The results reveal that the entrepreneur turnover is affected by several variables, including the length of trade credit granted, manufacturing expenses, the number of assets each business partner has, and the likelihood that a partnership would collapse. This study makes a novel contribution by illustrating the unique challenges faced by FE in Saudi Arabia. It sheds light on how cultural, regulatory, and economic factors interact to create a distinctive decision-making environment in the region. Such insights are essential for both academics and practitioners. Based on the findings, it is suggested that FE in Saudi Arabia adopt a proactive approach to risk management. This may involve enhancing risk assessment models, investing in technology, and developing a culture of compliance.

Keywords: Financial enterprises; Entrepreneurs; Risk factors; Saudi Arabia; Financial performance; Return of equity; Return of assets (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02484-w

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