Effects of Strategic Financial Leadership, Corporate Governance, and IFRS Compliance on Financial Performance: Evidence from Business Groups in Saudi Arabia

Abstract

This study investigates the impact of strategic financial leadership, corporate governance practices, and IFRS compliance on the financial performance of diversified business groups in Saudi Arabia. Using firm-level data from multi-entity organizations operating across construction, facilities management, and commercial investment sectors, the study examines how board-level financial oversight, governance frameworks, and standardized financial reporting influence organizational outcomes. Financial performance is measured through profitability, cost efficiency, and reporting timeliness indicators. The findings reveal that strategic financial leadership plays a central role in aligning governance mechanisms with financial objectives, while strong corporate governance and IFRS compliance enhance transparency and reduce operational inefficiencies. The study contributes to the emerging-market finance literature by providing evidence from Saudi Arabia and offers practical insights for CFOs and policymakers aiming to strengthen financial discipline and performance in large business groups.