Governance in crisis: do different types of ownership influence firm performance in GCC countries amid Covid-19?

This research examines how various ownership composition, such as royal, family, state, director, foreign, and block-holders, affect the performance of firms in the GCC region during the Covid-19 pandemic. The sample includes 373 non-financial GCC firms and the research uses the OLS regression techn...

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Main Authors: Sajead Mowafaq Alshdaifat, Esraa Esam Alharasis, Noor Hidayah Ab Aziz, Ishraq Bataineh, Hamzeh Al Amosh
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2025.2463576
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author Sajead Mowafaq Alshdaifat
Esraa Esam Alharasis
Noor Hidayah Ab Aziz
Ishraq Bataineh
Hamzeh Al Amosh
author_facet Sajead Mowafaq Alshdaifat
Esraa Esam Alharasis
Noor Hidayah Ab Aziz
Ishraq Bataineh
Hamzeh Al Amosh
author_sort Sajead Mowafaq Alshdaifat
collection DOAJ
description This research examines how various ownership composition, such as royal, family, state, director, foreign, and block-holders, affect the performance of firms in the GCC region during the Covid-19 pandemic. The sample includes 373 non-financial GCC firms and the research uses the OLS regression technique with data from 2020 to 2023. To fix the endogeneity, a ‘two-step system GMM estimation’ was adopted. The analysis found that family, block-holder, and director ownership of Covid-19 had a favourable impact on ROE, whereas royalty and state ownership had a negative impact. Regarding Tobin’s Q, the findings revealed that family ownership was substantial and positive, whereas block-holder, royal, and foreign ownership were significant and negative. The findings of this work are significant for investors, regulators, and management, particularly those seeking to improve a company’s capital market performance through ownership changes during crises in emerging economies such as the Covid-19 outbreak. The study’s outcomes provide authorities with insights into how they might regulate and monitor corporate activity, particularly amid unpredictable market conditions. To the authors’ knowledge, this is the first study to look into the influence of diverse ownership arrangements on business performance in the context of Covid-19 in emerging countries such as the GCC.
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spelling doaj-art-1722a488a37c4b7fae5a0a9eaf17e2a02025-08-20T02:38:10ZengTaylor & Francis GroupCogent Business & Management2331-19752025-12-0112110.1080/23311975.2025.2463576Governance in crisis: do different types of ownership influence firm performance in GCC countries amid Covid-19?Sajead Mowafaq Alshdaifat0Esraa Esam Alharasis1Noor Hidayah Ab Aziz2Ishraq Bataineh3Hamzeh Al Amosh4Department of Financial and Accounting Sciences, Middle East University, Amman, JordanDepartment of Accounting, College of Business, Mutah University, Karak, JordanFaculty of Accountancy, Universiti Teknologi MARA, Segamat, Johor, MalaysiaTunku Puteri Intan Safinaz School of Accountancy, College of Business, Universiti Utara Malaysia, MalaysiaDepartment of Financial Intelligence, University of South Africa, Pretoria, South AfricaThis research examines how various ownership composition, such as royal, family, state, director, foreign, and block-holders, affect the performance of firms in the GCC region during the Covid-19 pandemic. The sample includes 373 non-financial GCC firms and the research uses the OLS regression technique with data from 2020 to 2023. To fix the endogeneity, a ‘two-step system GMM estimation’ was adopted. The analysis found that family, block-holder, and director ownership of Covid-19 had a favourable impact on ROE, whereas royalty and state ownership had a negative impact. Regarding Tobin’s Q, the findings revealed that family ownership was substantial and positive, whereas block-holder, royal, and foreign ownership were significant and negative. The findings of this work are significant for investors, regulators, and management, particularly those seeking to improve a company’s capital market performance through ownership changes during crises in emerging economies such as the Covid-19 outbreak. The study’s outcomes provide authorities with insights into how they might regulate and monitor corporate activity, particularly amid unpredictable market conditions. To the authors’ knowledge, this is the first study to look into the influence of diverse ownership arrangements on business performance in the context of Covid-19 in emerging countries such as the GCC.https://www.tandfonline.com/doi/10.1080/23311975.2025.2463576Ownership structurefirm performanceCovid-19agency theoryGCC countriesAccounting
spellingShingle Sajead Mowafaq Alshdaifat
Esraa Esam Alharasis
Noor Hidayah Ab Aziz
Ishraq Bataineh
Hamzeh Al Amosh
Governance in crisis: do different types of ownership influence firm performance in GCC countries amid Covid-19?
Cogent Business & Management
Ownership structure
firm performance
Covid-19
agency theory
GCC countries
Accounting
title Governance in crisis: do different types of ownership influence firm performance in GCC countries amid Covid-19?
title_full Governance in crisis: do different types of ownership influence firm performance in GCC countries amid Covid-19?
title_fullStr Governance in crisis: do different types of ownership influence firm performance in GCC countries amid Covid-19?
title_full_unstemmed Governance in crisis: do different types of ownership influence firm performance in GCC countries amid Covid-19?
title_short Governance in crisis: do different types of ownership influence firm performance in GCC countries amid Covid-19?
title_sort governance in crisis do different types of ownership influence firm performance in gcc countries amid covid 19
topic Ownership structure
firm performance
Covid-19
agency theory
GCC countries
Accounting
url https://www.tandfonline.com/doi/10.1080/23311975.2025.2463576
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