The Effect of Board Characteristics on Governance Score in NPOs in Saudi Arabia

Hend Alregab

doi:10.47814/ijssrr.v9i2.3103

Hend Alregab Taif University, Saudi Arabia

DOI: https://doi.org/10.47814/ijssrr.v9i2.3103

Keywords: Nonprofit Organizations; Board Characteristics; Governance Quality; Saudi Arabia; Agency Theory; Stakeholder Theory; Board Independence; Board Size; Emerging Economies

Abstract

This study investigates the relationship between board characteristics and governance quality in nonprofit organizations (NPOs) in Saudi Arabia. Using data from 150 certified NPOs over the period 2021–2023, the study examines how board size, independence, gender diversity, and expertise influence governance scores. Multiple linear regression analysis reveals that board size and independence are positively and significantly associated with governance quality, supporting hypotheses grounded in agency and stakeholder theory. In contrast, board gender diversity and expertise do not show statistically significant effects. Organization size, included as a control variable, also demonstrates a significant positive relationship with governance outcomes. The findings underscore the importance of structural board attributes in enhancing governance effectiveness within NPOs. This study contributes to the limited empirical literature on nonprofit governance in emerging economies and offers practical insights for policymakers and nonprofit managers aiming to improve accountability and oversight mechanisms in the sector.

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