The impact of listing on banks’ performance: case study from Saudi Arabia

This study was inspired by two of the leading papers in the case study method: Eisenhardt (1991) and Dyer and Wilkins (1991). The work of those authors could be considered a benchmark for research based on a case study. Additionally, this research comes as a complement to re-categorize case study research design. After reviewing those papers, the authors identified certain misunderstandings relative to when a case study should be addressed as single or multiple case studies. This study reviewed both recent and ancient research papers that used the case study research design in their investigations based on this misunderstanding. Thus, the previously identified misinterpretation of case study categorization is the gap this study filled. For this study, the case study research design was to be re-categorized to understand which case study design suits which research study. Accordingly, based on the identified gap, the study used secondary data to re-categorize the case study research design through a literature review method. As a result, the study identified three case study categories: single setting case study with single sub-case, single setting case study with multiple sub-cases, and multiple case studies. Consequently, the result re-categorizes single case study design into single sub-case and multiple sub-cases. This study makes recommendations through the proposed approach that filled the gap identified in the case study design categorization. In terms of adding to knowledge, this study’s proposed approach will augment the optimal use of case study research design by management, economics, and other disciplines’ researchers in the future.

The study examines the influence of the cash conversion cycle (one of the components of working capital) on the firm profitability measured in terms of return on equity (ROE), return on assets (ROA), Tobin’s q, and gross operating profit (GROP) in the manufacturing sector of Saudi Arabia. The study selects a sample of 100 companies from nine industrial sectors listed on the Tadawul Stock Exchange starting from 2008 to 2019. A pooled regression is estimated to report the empirical results. The results report a positive and significant association between the components of working capital in terms of cash conversion cycle and the firm profitability in terms of ROA, ROE, and Tobin’s q, except for the GROP, where there is a negative and significant relationship. The study reports that the growth in firm performance is associated with supplier’s financing terms and inventory ordering cost. The results also show that larger firms are more profitable than smaller firms. Hence, the current study confirms the formulated hypothesis of having a significant association between the components of working capital and firm profitability.

The purpose of this study is to utilize the Three Stage Least Squares (3SLS) of the simultaneous equation estimation approach to revisit the possible cross relationship between IPO initial returns and aftermarket risk. A structural form equation system of IPO initial returns and aftermarket risk equations is estimated first to obtain the structural form coefficients. The analytically derived reduced form coefficients are then calculated to analyze the net effects of each exogenous variable on two endogenous variables. Major findings of this study are as follows. First, the signs of net effects of all exogenous variables on IPO initial returns and aftermarket risk are the same. In other words, any change in exogenous variables, IPO initial returns and IPO aftermarket risk will change in the same direction, i.e., the higher (lower) the IPO initial returns, the higher (lower) the IPO aftermarket risk. Second, the less the degree of corporate governance, the higher the IPO initial returns and aftermarket risk. Third, the higher the market risk or return before IPO, the higher the IPO initial returns and aftermarket risk.