CAPITAL MARKET COMPANIES IN THE UAE: DETERMINANTS AND FACTORS AFFECTING THE PERFORMANCE OF LISTED UAE COMPANIES

This research examines the influence of international ownership, national ownership, and CEO duality on organizational performance within listed organizations on the Dubai Financial Market (DFM). A multiple regression analysis was employed to assess the effects of international ownership, national ownership, and CEO duality on organizational performance. The study focused on 60 organizations during the fiscal year 2020. Through regression analysis of the collected data, the results indicate that national ownership has an insignificant yet positive impact on organizational performance. Furthermore, the findings demonstrate that international ownership significantly and positively affects organizational performance. Additionally, the analysis reveals that non-CEO duality positively correlates with organizational performance. The practical implications of this study are reflected in its findings, which underscore the importance of the independent variables within the context of investment possibilities—serving as proxies in our study. These findings enhance the understanding of the value of robust corporate governance elements, not solely for directly enhancing organizational performance, but also for amplifying their influence on external factors. Such insights can prove valuable to various stakeholders, including policymakers, regulators, and other interested parties, in their review of procedures in the UAE, particularly following the implementation of corporate governance laws. This study contributes to the existing literature by highlighting the roles played by international ownership, national ownership, and CEO non-duality in enhancing organizational performance.


INTRODUCTION
The significance of listed firms in promoting economic growth and establishing competitive advantages cannot be overstated in the dynamic global trade and economic landscape.The Dubai Financial Market (DFM), positioned at the heart of the UAE's financial system, provides a pivotal platform for companies to raise capital and expedite their expansion (Atef, 2022).Understanding the variables that influence organizational performance and their impact on economic growth becomes imperative in this context.This study examines how three crucial independent variables-international ownership, national ownership, and CEO duality-affect organizational performance in the UAE's DFM.It investigates how these factors contribute to competitive disadvantages and overall economic growth (Alabdullah et al., 2014;Ahmed et al., 2027;Almashhadani & Almashhadani, 2022;Alfadhel & Alabdullah, 2016).Organizational performance is pivotal due to its role in enhancing competitive advantages for represented companies.The ability of a business to efficiently achieve its objectives, fostering long-term 3 impact of CEO duality on organizational performance is a topic of corporate governance discussions.A combined CEO and Chairman can expedite decision-making and enhance internal communication, particularly beneficial in fast-paced and competitive markets.However, CEO duality raises concerns about checks and balances, potentially leading to an accumulation of power.In the absence of independent oversight, managerial entrenchment and reduced accountability may occur, potentially harming the organization's long-term success.The effect of CEO duality on business performance in the UAE hinges on firm-specific conditions, corporate governance practices, and the level of accountability mechanisms in place.
In recent years, profitability among UAE listed companies has encountered significant challenges.Economic hardships, volatile markets, corporate governance and transparency issues, regulatory compliance burdens, shifts in international investments and market sentiment, disruptions due to technological advancements, talent retention concerns, and escalating demands for environmental sustainability and ethical behavior have emerged as substantial factors influencing business performance on the Dubai Financial Market.Addressing these multifaceted issues requires collaboration among various stakeholders to enhance governance procedures, transparency, regulatory compliance, technological innovation, talent retention strategies, and environmentally conscious business practices.These efforts will contribute to the long-term success, competitiveness, and economic prosperity of listed companies in the UAE.

THEORETICAL BASIS
According to Alabdullah, (2023), Thottoli et al. (2019), and Alabdullah and Zubon (2023), corporate governance mechanisms (CGMs) are a set of procedures and guidelines that control the interactions between a business's shareholders, executives, and multiple stakeholders.The alignment of values between the shareholders and stakeholders is made possible by these processes, which are of the utmost significance for assuring successful management of business affairs through reliable and open instruments.The use of CGMs improves market trust, economic effectiveness, and ethics, all of which contribute to the prosperity of financial markets (Alabdullah et al., 2020;Abushammala et al., 2015;Alabdullah, 2023).Additionally, they greatly improve financial as well as non-financial sector business profitability overall (Ahmed et al., 2023).Strong corporate governance measures are increasingly necessary in emerging economies, especially in light of recent global frauds and breakdowns (Zinser, 2019;Hashim et al., 2019).Successful CGMs are now acknowledged as being essential to enhancing business performance, protecting the interests of domestic and foreign investors, and fostering economic growth (Alabdullah, 2020;Rahim et al., 2018Rahim et al., , 2019)).However, despite the significant interest and focus placed on CGMs by industrialized nations, emerging economies continue to lack modern and relevant studies on this topic (Almashhadani and Almashhadani, 2022).
The relationship between CGMs and firm profitability has been the subject of numerous research studies (Ahmed et al., 2020;Alabdullah, 2020;Alharbi et al., 2018;Alabdullah et al., 2019;Alabdullah and Ahmed, 2018).The substantial part played by CGMs in boosting organizational performance is well acknowledged by academics.Effective CGM implementation is a top priority in emerging nations since it promotes managerial excellence and business expansion, luring in both domestic and foreign investors (Marn & Romuald, 2012). However, Chen et al. (2011) noted that there are flaws in the legal oversight and safeguarding of investors procedures in emerging nations.According to a number of studies (Alabdullah, 2018;Alabdullah et al., 2016), CGMs may have an important influence on a company's profitability.The Gulf Cooperation Council (also known as the GCC) nations, particularly the United Arab Emirates (UAE), lack studies examining CGMs and their effects on corporate profitability.This study seeks to fill this knowledge shortage and advance academic knowledge regarding control strategies in the context of developing nations, notably in the UAE, where there is little published work on the subject.Despite Dubai's favorable qualities, according to Gross and Gháfar (2019), the nations of the GCC remain facing substantial challenges and urgently need economic reform, especially given the anticipated volatility in energy and oil prices at both medium-and short-term levels.
Due to the world's instability and the desire for greater study, particularly in light of the unanticipated pandemic (COVID-19 Crisis) that affected all countries worldwide, the current investigation is important (Alabdullah et al., 2020).This pandemic, along with other issues like unemployment and global warming, highlights the need to consider control systems as alternatives.The study focuses on the impact of control procedures on the financial outcomes of publicly traded companies in the United Arab Emirates and examines accountancy and leadership viewpoints in addition to providing theoretical as well as empirical insights regarding the impact of shareholders on business profitability.
The majority of recent studies on corporate governance practices and business performance are the subject of this study, with a focus on what has been reported in the available literature.Firms in the UAE are increasingly utilizing control measures to uphold shareholder accountability and enhance financial transparency (Tariq and Abbas, 2013).The creation of control mechanisms is a key topic in the corporate environment of the United Arab Emirates.Agency theory has frequently been used as a significant aspect in earlier studies, such as Alabdullah (2016), which looked into the role of corporate governance in boosting company performance.Yet, multiple studies fail to include the regulatory framework that more recent regulations have established.Studies like those by Bahoo et al. ( 2019) have looked at the effects of different corporate governance structures, notably inside ownership, on the profitability of organizations and have provided multiple techniques for carrying out empirical performance analysis.A mediocre level of application was found in Al-Gamrh et al.'s examination of several procedures and protocols in the UAE in 2020.Lode and Bajrei found a positive correlation between particular CG techniques and information asymmetry in UAE-listed firms in their 2020 study.In a different investigation, Kuwaiti and A (2019) looked at the impact of various CG mechanisms in publicly traded companies on profitability in the UAE.In many ownership arrangements, corporate governance rules are designed to handle potential conflicts between executives and stockholders.The aim of corporate governance, according to Al-Jaifi et al. (2017), is to create efficient oversight and lessen any exploitative management choices that could negatively impact minority shareholders.Furthermore, agency costs are said to be what support a specific level of corporate governance excellence, according to agency theory.These costs are a result of knowledge inequalities within the organization or conflicting agency difficulties.According to Agency Theory, for instance, knowledge asymmetry is more prevalent in firms with better investment prospects.Prior study indicates that such organizations confront a number of related difficulties, including maximizing the use of options for shares and modifying 5 compensation levels.There is a higher incentive to utilize alternative accounting metrics for performance and reporting as a result of the increased monitoring costs.Additionally, when companies have more discretion in selecting projects, management may choose to take advantage of the options available, which could benefit board supervision, particularly in fast-growing markets or those with more investment opportunities.While encouraging management to achieve objectives that improve shareholders' wealth, corporate governance regulations aim to restrict activities that could harm it.Without these protections, managers might defy the owners' wishes.Corporate governance, which is crucial for boosting and consolidating firm performance, enables responsibility and transparency.Therefore, businesses with strong corporate governance are more likely to have effective oversight, which lowers agency costs by reducing conflicts of interest between stockholders and managers.When there are numerous investment options available to defend their interests, shareholders usually seek strong governance frameworks in their organizations.Excellent corporate governance can also help to lessen information asymmetry, especially in high-growth organizations when management has access to information that shareholders do not about the value of prospective initiatives.Companies that have more investments opportunities often spend more to take advantage of them, which might be detrimental to the company's growth.These companies experience higher control costs, pay higher salaries, and incur other increased expenses, according to several accounting performance criteria (Alabdullah et al., 2020;Ahmad et al., 2018;Almashhadani and Almashhadani, 2023).According to Agency Theory, corporate governance, on the other hand, is thought to be aiding in the amelioration of this negative relationship by reducing agency costs and information asymmetry through effective monitoring and motivations.Nassar and Jreisat's (2020) investigated of the mechanisms of corporate governance system compliance showed that UAE businesses follow the control mechanisms laws' application.Al-Gamrh et al. (2020) dealt with how the performance of companies might be affected by two kinds of the mechanisms of CG which utilized by Arab and non-Arab stockholders.They find that where Arab international possession has a negative impact on firm performance, non-Arab international possession does not.Obaid and Amrah (2020) investigated the impact of some of the mechanisms on the standard of living in the Gulf Cooperation Council.The Gulf Cooperation Council laws introduced the stracture for the link between regulatory process and income quality, and the structure was suitable for assessing the level of EQ reported.Ramli (2019) studied how risks are associated when there are regulatory mechanisms in place in the financial services sector that is listed in the UAE.
They focused on the main risks to the efficiency of the controls, such as the functional, credit, market, and liquidity problems.Ahmed (2017) looked on how the United Arab Emirates' Islamic banks' financial results was affected by the control mechanisms Index.It is discovered that there is a favorable correlation between the control mechanisms Index and the financial results of financial institutions.
The ownership structure is viewed as an effective strategy used by corporations to lower agency costs by reducing managers' opportunistic conduct, according to past study in scientific research like and (2019).Numerous research examined the connection between ownership structure and corporate profitability, with mixed results, such as those by Bahoo et al. (2019) and Al-Gamrh et al. (2020).According to several studies, a company's profitability is significantly impacted by the ownership aspect.Al-Badr (2016e); Alabdullah and Colleagues (2018b,a).The aforementioned shows that insider ownership and foreign ownership significantly increase company profitability and corporate governance.
The following presumptions were created for the current investigation as a result: H1: There is a positive association between national possession and firm profitability (ROA).H2: There is a positive correlation between international possession and firm profitability (ROA).H3: There is a negative association between CEO duality and firm profitability (ROA).

RESEARCH METHOD
The objective of this study is to enhance our understanding of how domestic and foreign ownership impact company performance.The research examines 50 businesses throughout the fiscal year 2022.The sample chosen for this study is focused on nonfinancial businesses, encompassing all listed companies on the United Arab Emirates financial market.To support this investigation, secondary data from financial statements is employed.The analysis of the quantitative data collected employs the partial least squares (PLS) modeling approach.This robust methodology facilitates a comprehensive exploration of the relationships between factors and their effects on company performance.Additionally, it provides insightful insights into how local and foreign ownership influence the outcomes of the studied firms.
It is essential to underscore the significance of this research within the dynamic financial market of the United Arab Emirates.The study illuminates the intricate interplay between ownership structures and organizational performance, contributing to the body of knowledge that informs strategic decisions and policy formulation.The empirical design of the investigation ensures its potential to offer practical insights to policymakers, corporate leaders, and scholars alike.

Descriptive Statistics-Variables
The dependent variable under such a study, which represents the company's financial performance as assessed by Return on Assets (ROA), has an average ROA of 5.40, with a standard deviation of 0.56, according to the descriptive data acquired.Additionally, the results show that the national possession indicator has a mean value of 2.88 and a standard deviation of 0.870.Comparatively, the average for international possession is 3.12, with a standard deviation of 0.701.On the other hand, the CEO duality measure records an average of 2.98 and a standard deviation of 0.92.The descriptive statistics emphasize that the distribution of each of these observed values is normal.The use of descriptive statistics was thoroughly investigated, including the computation of mean values, standard deviations, skewness, and kurtosis.Particularly, as shown in Table 1, the skewness values for the variable items fall between the ranges of -3 and +3, and the kurtosis levels range between -10 and +10.Together, these findings support the data collection's regular distribution pattern.This thorough evaluation of the statistical analysis of the data does not only present a complete snapshot of the variables under examination but additionally strengthens the framework for further investigations.The

Discriminant Validity
To evaluate the particular validity inside the Partial Least Squares (PLS) structure, particular standards are used.Each construct's square root of the mean difference retrieved (AVE) must show a significant relationship with the AVEs of the other components.Fornell and Larcker (1981) suggest evaluating the square root of the AVE for a specific construct with the associations between that element and all the other elements in the model to deal with the issue of validity discrimination.This approach guarantees a thorough assessment of the distinctiveness of the various constructs and their ability to be separated from each other in the framework of analysis.Potential overlap and interactions are evaluated by comparing the square root of the AVE with correlations involving other constructs.This procedure is crucial for confirming the accuracy of the constructs' measurements and identifying their specific contributions to the overall model.In summary, these strategies provide a systematic methodology to support the reliability and interpretability of the outcomes of the PLS model, going beyond simple statistical analyses.Following these guidelines helps researchers maintain the stability of the model's underlying structure, resulting in accurate and insightful analysis results.With a focus on construct distinctiveness and close examination of correlations, the PLS analysis can be used to derive accurate results and practical consequences as explained in table 2. After assessing the measurement model and meeting every requirement, the structural framework was assessed.From the framework model, the coefficient of determination (R2) is verified.The inside provide variable in this study has a coefficient of variation (R2) of 0.310 (NP), (IP), and (CEO-D), meaning that the contrast in company profitability (ROA) which could be explained by predictive factors can be seen: variables were used in this research (national possession, International possession, and CEO duality) to gauge the impact of company culture on employee performance relative to the norm.

Testing Hypothesis -Regression Coefficient
The outcomes of the supported hypothesis test are shown in Table 3.It appears to be a strong association between national possession and business profitability, just as there is a significant relationship between international possession and firm profitability, according to the findings of the regression co-efficient (Co-efficient Estimated > 0.001).However, the opposing result demonstrates a negative relationship between CEO duality and company profitability, indicating a strong positive connection between non-duality and company performance.It implies that ownership at the national, international, and non-CEO levels has an impact on business profitability.

Recommendations
The results obtained from the study underline the crucial role of robust corporate governance procedures in organizational success.These findings hold substantial implications for regulatory bodies, policymakers, and authorities within the UAE.It is imperative that these entities take these findings into serious consideration to further strengthen corporate governance frameworks.This effort could involve a comprehensive review of policies and regulations, focusing on bolstering transparent ownership arrangements while concurrently minimizing instances of CEO duality.Such measures would effectively contribute to the enhancement of overall company performance.
In the realm of strategic investments, shareholders and fund managers need to adopt a nuanced approach.The study's insights emphasize the significance of understanding how different ownership structures can influence organizational performance.Specifically, the research underscores that companies with foreign ownership often exhibit superior performance metrics.This observation suggests that exploring international investments could offer a promising avenue for yielding enhanced returns on investments.It is therefore recommended that investment strategies take into account the implications of various ownership models on performance outcomes.
For executives and managers of publicly traded companies, the research findings have direct relevance to their decision-making processes.Ownership arrangements should be integrated into the strategic considerations of such leadership teams.The research outcomes highlight the potential benefits associated with global ownership and the absence of CEO duality on performance.Armed with this understanding, executives can make informed decisions when contemplating alliances, mergers, and acquisitions.These findings provide valuable insights that could influence the trajectory of strategic choices.
Furthermore, the integration of these research findings into education is a critical consideration.Academic institutions and business schools are encouraged to incorporate these findings into their curricula.By doing so, a deeper understanding of the intricate relationship between ownership structures and organizational performance can be cultivated among future graduates.Equipped with this knowledge, these graduates will be better equipped to navigate the complexities of the professional landscape and contribute positively to their respective fields.

Limitations
Several limitations pertinent to the current study are outlined below: Generalizability: The study's scope is confined to companies listed on the Dubai Financial Market in the 2020 fiscal year.Consequently, the findings should be interpreted with caution when applying them to different industries, geographic regions, or historical timeframes.
Causality: While the study identifies correlations between ownership structures and organizational performance, it falls short of establishing causality between these variables.The observed connections could be influenced by additional underlying factors not accounted for in this research.
Dynamic Nature: Ownership configurations within companies are subject to change over time, influenced by the evolving business landscape.The study's snapshot of a single fiscal year may not fully capture the intricate, long-term dynamics that significantly impact organizational achievements.
External Factors: The analysis omits consideration of external geopolitical and macroeconomic variables that can exert a notable influence on organizational performance.The relationship between ownership structures and broader economic contexts warrants exploration in future research endeavors.

Suggestions for Future Research
To further enhance our understanding of ownership arrangements and their impact on company performance, several avenues for future studies are recommended.For instance, employing longitudinal analysis-a comprehensive investigation spanning multiple fiscal years-can provide researchers with a more nuanced understanding of how ownership structures evolve over time and the enduring effects these changes exert on company performance.
Conducting cross-industry analyses could unveil subtle distinctions in how ownership arrangements interrelate with performance within specific sectors.Exploring potential mediating factors, such as corporate social responsibility policies or innovation initiatives, could offer insights into the mechanisms underpinning the relationship between ownership arrangements and performance outcomes.
Comparative studies on a global scale would provide a broader perspective on how ownership arrangements influence performance across diverse stock markets worldwide.In addition, to deepen insights, qualitative research methods can complement quantitative analysis, providing a richer understanding of how ownership structures intricately shape organizational performance.
These proposed research directions hold promise for advancing our comprehension of the intricate connections between ownership arrangements and company performance.By addressing these areas, future studies can contribute valuable insights to both academia and industry practice.

CONCLUSION
In conclusion, this study has delved into the intricate interplay between organizational performance and ownership structures within the specific context of the Dubai Financial Market.The research aimed to illuminate significant facets of corporate governance and strategic leadership by investigating the impacts of international ownership, national ownership, and CEO duality on company performance.These findings constitute significant advancements in both theoretical comprehension and realworld application in the realms of organizational structure and corporate governance.
The analysis unequivocally demonstrated that an international presence serves as a reliable indicator of enhanced organizational effectiveness.The global nature of companies and the potential benefits stemming from diverse ownership models are underscored by the improved performance outcomes observed in firms with substantial levels of international ownership.This underscores the importance of fostering international relationships and investments to stimulate global development and competitiveness.
Similarly, local ownership participation exerts a positive influence on national possession with regard to organizational performance.Despite the statistical nonsignificance of this correlation, the positive trend highlights the potential advantages of aligning organizational ownership with the local business climate.This underscores the deep-seated connection between a nation's economic dynamics and corporate success, urging policymakers and business leaders to cultivate an environment conducive to local investments.
Remarkably, the research revealed that non-CEO duality has a favorable impact on organizational performance.This discovery challenges conventional wisdom and suggests that segregating the responsibilities of the CEO and chairman could enhance decision-making and overall effectiveness.By establishing a beneficial link between nonduality and organizational efficiency, the study advocates for corporate governance practices that endorse a clear separation of leadership responsibilities.
However, it's important to acknowledge the limitations of this research.The ability to generalize these findings to broader contexts is constrained by the study's focus on a specific time frame and market.Given the absence of a causal connection between ownership structures and performance, interpreting the correlations as direct cause-andeffect relationships necessitates caution.Additionally, the study did not account for external macroeconomic and industry-specific influences, warranting further investigation into the potential ramifications of these factors.
Consequently, this study contributes not only to our comprehension of ownershipperformance dynamics but also to our grasp of effective corporate governance strategies and their impact on organizational success.The implications extend to decision-makers in government, business, finance, and other sectors.Stakeholders can enhance organizational performance by recognizing the effects of both national and international ownership, as well as the dichotomous role of the CEO.
The findings from this study serve as a springboard for future research endeavors, as the corporate landscape continues to evolve due to globalization, technological advancements, and shifting consumer behaviors.Ongoing research, cross-industry evaluations, and comprehensive qualitative investigations will further refine our understanding of the intricate effects of ownership structures on organizational ADVANCED RESEARCH ON SHARIA FINANCE AND ECONOMIC WORLDWIDE https://ojs.transpublika.com/index.php/CASHFLOW/E-ISSN : 2809-8226 | P-ISSN : 2809-848X ADVANCED RESEARCH ON SHARIA FINANCE AND ECONOMIC WORLDWIDE https://ojs.transpublika.com/index.php/CASHFLOW/E-ISSN : 2809-8226 | P-ISSN : 2809-848X 7 present study offers the foundation for solid statistical conclusions and clarifications, hence boosting the reliability and validity of the research findings.It also establishes the normal distribution of the data.