The Nexus Between Corporate Governance Im-provements, Corporate Investment and Value Crea-tion: Evidence from Shariah-Compliant Companies

This paper investigates the effects of corporate governance improvements on value creation’s sensitivity to corporate investment for non-financial firms listed on the Saudi Stock Exchange, covering 100 Shari-ah-compliant companies from 2020-2023. The author uses multivariate regression analyses to verify the proposed hypotheses. The study finds that corporate governance improvements—such as higher ownership concentration, larger boards, CEO duality, and independent boards—significantly impact investment-driven value creation. This highlights the importance of strong corporate governance in managing investments to create value through effective, focused decision-making. This research suggests some implications and recommendations for companies, investors, and other stakeholders to make appropriate behavioral decisions related to the ownership structures and board characteristics to ensure a high level of Value Creation.