The Legal Framework for Corporate Governance Under Saudi Law and United States Law

Objective: This study aims to conduct a comparative analysis of the legal frameworks of corporate governance in Saudi Arabia and the United States of America. Theoretical Framework: The study's theoretical framework is based on institutional theory, and the research addresses the regulatory rules and formal structures of corporate governance. Method: The qualitative methodology adopted for the study is a comparative case study approach where relevant laws and regulations are reviewed as academic literature in both countries. Results: The findings highlight that although Saudi Arabia and the United States have established a legal framework for corporate governance, their approaches differ significantly. These differences are manifested in regulatory mechanisms, institutional structures, and implementation strategies. Research Implications: The implications of this study are to improve the understanding of how national legal systems shape corporate governance practices; Offering insights into the complex interactions between institutional environments and governance mechanisms. Originality/Value: This research provides a refined comparative perspective that corporate governance reduces corruption, helps achieve justice, protects a company’s financial resources, and creates attractive investment opportunities.