Search

This research delves into the intricate effects of mergers and acquisitions (M&A) on stock prices within the Saudi Arabian banking sector, employing the event study methodology (ESM) to examine both short-term and long-term impacts on stock valuations. The study meticulously calculates expected and abnormal returns (ARs) around merger events, shedding light on the significant influence these corporate actions exert on market perceptions and investor behavior. The methodology encompasses an analysis of daily stock price data before and after merger events, providing a detailed view of market reactions. Key findings reveal an immediate positive market response to merger announcements, driven by the anticipation of synergistic benefits, alongside diverse long-term stock price effects that underscore the complex relationship between initial expectations and actual merger outcomes. The research concludes that strategic merger planning and effective communication with stakeholders are crucial for realizing the anticipated benefits of mergers. By offering new insights into the sector-specific and regional dynamics that affect M&A outcomes, this study enhances understanding of the significant implications for investors, financial institutions, and policymakers engaged with the Middle Eastern financial markets. [ABSTRACT FROM AUTHOR]

This study examines the relationship between entrepreneurship and sustainable development in Saudi Arabia from 2006 to 2022, focusing on the economic, social, and environmental dimensions. Using the autoregressive distributed lag (ARDL) model, the research investigates both short-run and long-run dynamics to understand how entrepreneurial activities influence sustainable development within the framework of Saudi Arabia's Vision 2030 initiative. The findings indicate that entrepreneurship significantly contributes to economic growth through job creation and innovation, thereby aiding in the diversification of the economy away from oil dependency. Socially, entrepreneurial initiatives have a positive impact on gender equality and social inclusion by empowering women and integrating youth into the labor market. Environmentally, entrepreneurship helps reduce carbon emissions and promotes sustainable business practices. Despite these positive outcomes, challenges such as regulatory barriers, limited access to finance, and the need for a supportive entrepreneurial ecosystem remain. Recommendations include enhancing entrepreneurial education, providing financial incentives, and streamlining regulatory processes to better support start-ups and SMEs. This study highlights the necessity of addressing these challenges to fully realize the potential of entrepreneurship for sustainable development in Saudi Arabia. By providing empirical evidence on the significant role of entrepreneurship in driving sustainable development, this research offers actionable insights for policymakers aiming to foster a more resilient and diversified economy in line with Vision 2030. [ABSTRACT FROM AUTHOR]

As prominent oil producers, Gulf Cooperation Council (GCC) countries have played a significant role in the global energy market. However, as the world's attention increasingly shifts towards environmental sustainability, understanding the implications of the GCC's economic activities on CO2 emissions becomes indispensable. This research paper investigates the relationship between specific economic indicators and their impact on CO2 emissions in the GCC from 2001 to 2021. This study employs quantile regression, a robust statistical method that estimates the conditional quantiles of a response variable given a set of predictor variables. The findings reveal several essential insights: Financial institution efficiency is significant and negative at a 1% level at the lower (10th, −83,537.3) and higher quantiles (90th, −549,002.3). The relationship between the GDP per capita and CO2 emissions varies across quantiles, highlighting the complexity of the growth–environment nexus. Total patents exhibit a positive and significant relationship with emissions, underscoring the importance of directing innovation towards environmentally sustainable solutions. Renewable energy consumption displays a nuanced relationship with CO2 emissions, with a more substantial negative impact observed at higher consumption levels. This underscores the potential of renewable energy to mitigate emissions when integrated at scale. This study's outcomes hold crucial policy implications for GCC countries as they seek to align economic growth with environmental sustainability. The findings emphasize the importance of fostering financial institution efficiency, promoting green innovation, and expanding renewable energy sources to reduce emissions. [ABSTRACT FROM AUTHOR]

This research paper aims to explore the complex relationship between entrepreneurship (REE), economic growth (GDP), and the moderating role of political stability (PS) in the context of the Gulf Cooperation Council (GCC) countries. Utilizing a balanced panel dataset from 2006 to 2020, we employed Panel Least Squares and Panel EGLS (Cross-section random effects) to evaluate the interactions among these variables. The findings reveal that more than entrepreneurship alone is needed to significantly contribute to economic growth in the GCC countries. However, when political stability serves as a moderating variable, the impact of entrepreneurship on economic growth becomes markedly positive. The study provides critical insights for policymakers, indicating the necessity of a multi-faceted approach incorporating entrepreneurship and political stability in economic planning. The research fills a significant gap in the existing literature by shedding light on the intertwined nature of entrepreneurship and political stability as crucial drivers of economic growth in the GCC. This paper further offers concrete policy recommendations rooted in empirical evidence, aiming to guide future economic strategies in the region. Impact Statement: This research paper explores the intricate relationship between entrepreneurship, economic growth, and the moderating role of political stability within the Gulf Cooperation Council (GCC) countries. Utilizing a balanced panel dataset from 2006 to 2020, the study employs Panel Least Squares and Panel EGLS (Cross-section random effects) to analyze the interactions among these variables. The findings reveal that entrepreneurship alone does not significantly contribute to economic growth in the GCC countries. However, when political stability serves as a moderating variable, the impact of entrepreneurship on economic growth becomes significantly positive. This research provides essential insights for policymakers, highlighting the necessity of a multifaceted approach that incorporates both entrepreneurship and political stability in economic planning. By addressing a critical gap in existing literature, this study underscores the intertwined nature of entrepreneurship and political stability as pivotal drivers of economic growth in the GCC, offering concrete policy recommendations based on empirical evidence to guide future economic strategies in the region. [ABSTRACT FROM AUTHOR]

This paper investigates the short‐term response of the Saudi stock market (Tadawul) to the COVID‐19 outbreak. Event study methodology applied to data derived from the 21 industry groups that constitute the Saudi stock market to calculate abnormal returns for the trading days after the announcement of the COVID‐19 in both China and Saudi Arabia. The results indicate that the estimated CARs for the industry groups and their sum on the event day were not statistically significant. Furthermore, the formal announcement of the first case of the COVID‐19 in China had a negative but not significant impact on the Saudi stock market. In contrast, in the first 9‐days event window, the announcement of the first confirmed case in Saudi Arabia had a negative and significant effect. Moreover, the most negatively affected industry groups were banks, consumer services, capital goods, transportation and commercial services, whereas telecommunication services and food and beverage were positively affected at the event window (+1, +9). In general, the Saudi stock market's response had become weaker in the event windows come after (+1, +9), and different industry groups were found to have different responses to the COVID‐19 outbreak. [ABSTRACT FROM AUTHOR]