Corporate Governance Disclosure and the Financial Practices Essay

Corporate Governance Disclosure and the Financial Practices - Essay Example Corporate governance and compliance to its prescribed practices has always been a subject of discussion. Adherence to corporate governance practice helps a corporate organization to rationalize risks as well as maximize its business performance at the same time. In the present day aggressive business environment that calls for a firm regulatory setting, compliance to corporate governance norms help organizations to sustain profitability in the long run. This study evaluates the influence of corporate governance disclosure guidelines on the Saudi Arabian companies in general and their annual issuance of financial reports in particular. This research study is motivated by several factors. First, the Board of CMA had issued a guidance of corporate governance for the corporate organizations in Saudi Arabia. Studying the extent of influence of corporate governance on the annual reports of the Saudi listed companies would help in understanding the attributes of companies that act in accord ance with the CMA guidance. Furthermore, the research study would also benefit in identifying the possible issues that explain the dissimilarities in compliance across Saudi Arabian organizations. Secondly, review of literature on the subject of corporate governance reporting reveals that there are not many empirical researches conducted on the business backdrop of emerging nations, such as Saudi Arabia.  The rationale of this research study is to emphasise on the aspects that impel the corporate governance norms in Saudi Arabia.