The impact of corporate governance quality on non-financial disclosure levels: Evidence from Saudi listed companies
DOI:
https://doi.org/10.65453/ajbmr.v15i2.1413Keywords:
Corporate Governance; Non-Financial Disclosure; ESG Reporting; Board Characteristics; Audit Committee Activity; Gender Diversity; Saudi Listed Companies; Vision 2030 SustainabilityAbstract
This study examines the impact of corporate governance quality on the level of non-financial disclosure among Saudi listed companies, with a particular focus on environmental, social, and governance (ESG) information. Although corporate governance has been widely investigated in relation to financial reporting, quality, limited research has explored its influence on non-financial disclosure in emerging markets, especially within the Gulf region. This study aims to address this gap by analyzing how board size, board independence, gender diversity, and the activity of audit committees contribute to enhancing the extent and quality of non-financial disclosures. A quantitative research design is employed using secondary data from annual reports, governance disclosures, and sustainability reports of non-financial companies listed on the Saudi Exchange (Tadawul) between 2019 and 2024. Non-financial disclosure is measured using a structured ESG disclosure index adapted from recent international frameworks. The study applies fixed-effects panel regression to control for firm-specific variations over time. The expected findings suggest that stronger governance characteristics—such as more independent boards, greater gender diversity, and more active audit committees—are positively associated with higher levels of ESG-related disclosure. These results would provide valuable insights for regulators, investors, and corporate leaders seeking to enhance transparency, meet stakeholder expectations, and align with Saudi Vision 2030 sustainability objectives. This study contributes to the growing literature on corporate governance and non-financial reporting by offering recent empirical evidence from an emerging market context.
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