Corporate governance impacts ESG disclosures in Saudi firms, shaping sustainable operations.
The article examines how certain corporate governance practices affect the environmental, social, and governance (ESG) disclosures of companies in Saudi Arabia. Using data from 2010 to 2020, the study found that board chairman independence and audit committee size impact ESG disclosure. Specifically, board chairman independence has a negative effect, while audit committee size has a positive effect. However, board independent director meeting attendance and audit committee meetings do not significantly influence ESG disclosure. The study also revealed the impact of these governance mechanisms on individual components of ESG reporting, providing valuable insights for regulators, boards of directors, managers, and investors to improve sustainability practices in Saudi firms.