Corporate Governance Mechanisms and ESG Reporting: Evidence from the Saudi Stock Market

Hasan Mohamad Bamahros, Abdulsalam Alquhaif, Ameen Qasem, Wan Nordin Wan-Hussin, Murad Thomran, Shaker Dahan Al-Duais, Siti Norwahida Shukeri and Hytham M. A. Khojally
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Hasan Mohamad Bamahros: Department of Accounting, College of Business Administration, University of Hail, Hail 55471, Saudi Arabia
Abdulsalam Alquhaif: Department of Accounting, College of Business Administration, University of Hail, Hail 55471, Saudi Arabia
Ameen Qasem: Department of Accounting, College of Business Administration, University of Hail, Hail 55471, Saudi Arabia
Wan Nordin Wan-Hussin: Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, Kuala Lumpur 50300, Malaysia
Murad Thomran: Department of Accounting, College of Business Administration, University of Hail, Hail 55471, Saudi Arabia
Shaker Dahan Al-Duais: Accounting Department, Faculty of Administrative Sciences, Ibb University, Ibb 9674, Yemen
Siti Norwahida Shukeri: Department of Accounting, College of Business Administration, University of Hail, Hail 55471, Saudi Arabia
Hytham M. A. Khojally: Department of Accounting, College of Business Administration, University of Hail, Hail 55471, Saudi Arabia

Sustainability, 2022, vol. 14, issue 10, 1-20

Abstract: The code of corporate governance in Saudi Arabia places a greater focus on social responsibility initiatives by Saudi companies and the reporting of such activities to the community. The current study examines the relationship between corporate governance mechanisms and environmental, social, and governance (ESG) disclosures amongst Saudi companies. In particular, we extend previous studies by covering unique Saudi corporate governance mechanisms (i.e., the presence of members of the royal family on the board (BROY) and of external members on the audit committee (ACEXT)), and their impact on ESG disclosure. Using 206 company-year observations for Saudi listed companies spanning the period 2010 to 2019, we find the presence of BROY and ACEXT has a positive and significant association with ESG disclosure. The findings of this study may help policymakers to develop regulations regarding corporate governance mechanisms to enhance ESG disclosure.

Keywords: board of directors; audit committee; corporate social responsibility; Saudi Arabia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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