Corporate Governance, Gender Diversity and Risk Management in Saudi Arabian Banks

Abstract

This study empirically investigates the impacts of corporate governance and gender diversity on the comprehensive risk profile of twelve (12) Saudi Arabian Banks, encompassing total, credit, market, and operational risks. Using a longitudinal dataset from 2014 to 2023, the analysis employs panel data methods, such as Ordinary Least Squares (OLS), Fixed Effects, and Random Effects models to ensure robust estimations. The findings reveal a mixed relationship. While certain governance mechanisms and increased gender diversity align with the study's hypothesis by demonstrating a significant mitigating effect on specific risk categories, other results present contradictions, suggesting a more complex interplay. Justifications for these divergent outcomes are explored, considering contextual and industry-specific factors. The study concludes by providing targeted recommendations for policymakers, regulators, and corporate boards to refine governance structures and diversity policies for improved risk oversight and organizational flexibility.