| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 18 |
NO. 2 |
PAPER 2 |
10.5958/2321-2012.2022.00012.4 |
BOARD OF DIRECTORS’ CHARACTERISTICS AND BOARD COMPENSATION MODERATED BY FAMILY CONTROL
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| Hasan Mohammed Bamahros* ,Mohieddin Salem Grada*, Abdulsalam Saad Alquhaif* and Ameen Qasem* |
| * Department of Accounting, College of Business Administration University of Ha’il, Kingdom of Saudi Arabia |
| This study used a dataset of 219 listed firm years on the Tadawul Stock Exchange in 2018- 2020, 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 documents that 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.
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