Examining the Impact of Corporate Governance on Investors and Investee Companies: Evidence from Yemen

Fahd Alduais (), Jafer Alsawalhah and Nashat A. Almasria ()
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Fahd Alduais: Department of Accounting, Philadelphia University, Jarash Road, 20 KM, Amman 19392, Jordan
Jafer Alsawalhah: Department of Accounting, Philadelphia University, Jarash Road, 20 KM, Amman 19392, Jordan
Nashat A. Almasria: Department of Accounting, Philadelphia University, Jarash Road, 20 KM, Amman 19392, Jordan

Economies, 2023, vol. 11, issue 1, 1-25

Abstract: The purpose of this study was to determine whether corporate governance is an important and effective technique for enhancing investors’ confidence in existing and prospective companies and for creating opportunities for safe investment in Yemen. A survey was conducted among certified public accountants to assess the importance of corporate governance. We employed regression analysis to test our hypothesis. According to the results of the study, corporate governance is an essential component of success for companies, and those firms that apply corporate governance best practices are highly regarded. Additionally, the findings suggest that regulators, policymakers, and standard-setters should raise awareness of the importance of protecting shareholders’ rights by providing seminars and courses for Yemeni media, unions, and professional associations. Moreover, in an environment of uncertainty there is a reluctance to invest and a prevalent tendency to invest in real estate. Furthermore, the results indicate that corporate governance is not practiced by all companies but only to a limited extent by some joint-stock companies. Most of the Yemeni companies that have adopted CG are joint-stock companies, so investors prefer to invest in these companies. The findings of this study provide valuable insights for regulators, practitioners, and academicians. We recommend that this survey be extended to a larger sample, including supervisory managers of companies. This study provides an insightful contribution, because it clarifies the importance of corporate governance for Yemeni investors and investee companies.

Keywords: transparency; awareness; disclosure; investee companies; investor protection; corporate governance in Yemen (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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