ESG Disclosure and Firm Value: Do Audit Committee Characteristics and Sustainability Committee Matter?

Abdelmoneim Bahyeldin Mohamed Metwally, Gaber Sallam Salem Abdalla (), Saleh Aly Saleh Aly and Mohamed Ali Shabeeb Ali
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Abdelmoneim Bahyeldin Mohamed Metwally: Department of Accounting, Faculty of Commerce, Assiut University, Assiut 71515, Egypt
Gaber Sallam Salem Abdalla: Department of Insurance and Risk Management, Faculty of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11432, Saudi Arabia
Saleh Aly Saleh Aly: Department of Accounting, Faculty of Commerce, Beni Suef University, Beni Suef 62511, Egypt
Mohamed Ali Shabeeb Ali: Accounting Department, Faculty of Commerce, South Valley University, Qena 83523, Egypt

IJFS, 2025, vol. 13, issue 4, 1-0

Abstract: This study examines how ESG disclosure (ESGD) influences firm value (FV) in Saudi Arabia. It also analyzes the moderating roles of audit committee (AC) characteristics and sustainability committees (SC) on this relationship. The sample consists of 100 top non-financial firms listed on the Saudi stock exchange (Tadawul) from 2015 to 2022, yielding 800 firm-year observations. Using pooled ordinary least squares (OLS), fixed effects regression, and GMM methods, the findings indicate a significant positive effect of ESGD on FV. Moreover, all AC characteristics and the sustainability committee positively and significantly strengthened this relationship. These findings carry important implications for investors, regulators, and corporate managers by highlighting how governance structures can influence financial performance, especially in emerging markets. This study contributes to the literature by expanding the discussion on the beneficial impact of AC characteristics and SC on FV within developing economies. Unlike earlier research that mainly focused on the direct link between ESGD and FV, this work underscores the role of governance factors in enhancing that relationship.

Keywords: ESG; firm value; audit committee; sustainability committee; corporate governance; emerging economy (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2025
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