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ESG disclosures and board of directors’ characteristics evidence from Saudi Arabia
Almahdi, Raghad
Almahdi, Raghad
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Abstract
This study looks into how board composition affects Environmental, Social, and Governance
(ESG) disclosures made by Saudi Arabian publicly traded companies. Board independence,
gender diversity, board size, and attendance at meetings are the four main governance
characteristics that are the subject of this study. The report examines how these internal
governance structures affect ESG transparency, driven by Saudi Arabia's Vision 2030 and the
growing legislative push for sustainability. Using a quantitative approach and secondary data
gathered from governance and annual reports from 2020 to 2024, the study applies multiple
regression analysis to a cross-sectional sample of 70 companies.
The findings show that ESG disclosures are positively and statistically significantly impacted
by board independence, gender diversity, and attendance at board meetings. On the other hand,
there is no discernible correlation between board size and financial factors including leverage,
bank size, and return on assets. The results show that internal board dynamics have a greater
influence on sustainability reporting in Saudi Arabia than firm size or profitability. This
emphasizes how important good governance is becoming in promoting moral and open
business practices in developing nations.