The Role of Board Independence in Enhancing the Relationship between ESG Disclosure and Financial Performance | ||
| مجلة الاسکندرية للبحوث المحاسبية | ||
| Article 13, Volume 9, Issue 3, September 2025, Pages 43-92 PDF (1.73 M) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/aljalexu.2025.455751 | ||
| Authors | ||
| Hossam Sharawi1; Hattan Abdulaziz Taweeli2 | ||
| 1Jeddah International College (JIC) | ||
| 2Jeddah International College | ||
| Abstract | ||
| This study aims to analyze the relationship between Environmental, Social, and Governance (ESG) disclosure and financial performance of non-financial companies listed on the Saudi Stock Exchange, with a focus on the moderating role of board independence. The study adopts a quantitative approach, employing multiple regression analysis and correlation tests to analyze data extracted from financial reports and sustainability disclosures covering the period from 2019 to 2023. The sample includes 375 observations across 75 non-financial companies operating in 18 different sectors. The findings reveal that social disclosure had the most significant impact on financial performance, followed by environmental disclosure, while governance disclosure exhibited a weak influence. Moreover, the results indicate that board independence did not enhance the relationship between ESG disclosure and financial performance, suggesting the need for more effective governance mechanisms to improve transparency, build investor trust, and achieve the objectives of Saudi Vision 2030. | ||
| Keywords | ||
| Environmental, Social, and Governance (ESG) Disclosure; Corpo-rate Governance; Board Independence; Financial Performance; Saudi Stock Exchange | ||
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