Does Family Ownership Moderate the Relationship between Board Diversity and the Financial Performance of Saudi-Listed Firms

Round 1

Reviewer 1 Report

This manuscript provides valuable insight into the moderating effects of family ownership on the link between board diversity and financial performance of selected companies listed in the Saudi market. Nevertheless, I have some suggestions to improve this article.

1/ Authors should reduce the hypotheses and focus on the most important ones.

2/ Why did you include several interaction terms in the model. It would be appropriate to consider one aspect of board diversity while analyzing the moderating effect of family ownership, all other things being equal.

3/ Authors may also compute the marginal effects of each component of board diversity under the conditional effects of family ownership.

4/ Expand the discussion of the results and provide more practical policy implications.

Minor editing is required to remove typos and grammatical mistakes.

Author Response

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Author Response File: Author Response.pdf

Reviewer 2 Report

Does family ownership moderate the relationship between board diversity and the financial performance of Saudi-listed firms

Comments and Suggestions for Editor and Authors

This article examines the role of family ownership as a moderator in the relationship between board diversity and corporate financial performance. The abstract, introduction, and literature review are carefully written and balanced. The methodology used and the discussion of the results are presented in a clear and objective way. The work is conducted and presented in a balanced way. The conclusion is presented objectively and moderately, without being excessively long and tedious. However, the study could and should come to more conclusions.

Bibliography is extensive and current. Overall, this is a good quality work, needing only a few refinements for publication.

Other issues related to the work presented:

1.    What is the main question addressed by the research? Is it relevant and interesting?

The main issue addressed by the research is the moderating role of family ownership in the relationship between board diversity and financial performance. It is an interesting and relevant topic.

2.      How original is the topic? What does it add to the subject area compared with other published material?

It is a topic, interesting and current. In this type of work, there is always something new, especially for the regions where the studies are carried out.

3.      Is the paper well written? Is the text clear and easy to read?

Indeed, the text is effectively composed, offering clarity, objectivity, and precision. In this aspect, the paper is commendable. Nevertheless, during the discussion of the results, it is crucial to establish a connection with the literature review. Specifically, it should be elucidated where the results align with prior research and where they diverge from the studies previously cited in the literature review.

4.      Are the conclusions consistent with the evidence and arguments presented? Do they address the main question posed?

The conclusion can and should be improved. The work has a good presentation and discussion of results, so the conclusion can be improved.

5.      Is there any current bibliography that can be suggested, with the aim of improving the paper?

Bibliography is extensive and current.

In a scientific text, its quality is very important. The English in your writing seems fine to me, but I admit I'm not a native English speaker.

Author Response

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Author Response File: Author Response.pdf

Reviewer 3 Report

The topic of this paper is so interesting and highly relevant to this journal. I will provide you with few comments that could enhance the academic quality of this paper. 

First, What is the motivation for this study, this could be tailored by illustrating the research problem, question and aims. Try to use figures and numbers from statistics published in reports related to Saudi stock market and the presence of family ownership in this context. 

You should convince the reader that your paper is worth reading, this should be done within the introduction, therefore, contributions of this study should be shown within the introduction section. 

The institutional background is well-written. However, the first 3 lines are unnecessary. Saudi Arabia is well-known worldwide, and all educated readers know it is a kingdom.

Do not you think that 3 theories is too much for your paper, I suggest that you select the most convincing one. 

Figure 1 should be deleted, it is uncommon in panel data studies. 

Within Table 1 and Table 2, please add a column for the observation numbers. 

Please add reference in table 3 for the measurement of the variables.

The measurement of Family ownership and  Government ownership variables should be clarified and elaborated in better way. 

The results should be discussed in a better way and please consider the discussion of the results from theoretical perspective and in relation to previous studies. 

Conclusion should show the research implications, limitations and future research directions. 

Good luck!

Minor editing of English language required

Author Response

please see the attachment

Author Response File: Author Response.pdf

Reviewer 4 Report

Review of the paper titled „Does family ownership moderate the relationship between board diversity and the financial performance of Saudi-listed firms” under consideration to the International Journal of Financial Studies:

Major issues:

-        none

Minor issues:

-        Table 2: one could sort the values by the last column.

-        Line 493: “oon” -> on

-        Think of any limitation of your study at the end of the conclusion (case of one country).

Outcome:

The paper has a good and to-the-point introduction, presenting state-of-the-art, results, agenda and novelty of the paper. The paper is well-referenced. It has a chapter presenting the institutional background of Saudi, including the formulation of board members. It has a decent review of theories and empirical works done so far. The hypotheses are derived from previous research. The research concept is clear to me, with the use of sufficient methods. My general opinion of the paper is very positive. Thus, I recommend publication.

Author Response

please see the attachment

Author Response File: Author Response.pdf