Maha Faisal Alsayegh

This study examines the impact of environmental, social, and governance (ESG) disclosures on the value of non-financial firms listed on the Saudi Stock Exchange (Tadawul) from 2017 to 2022. It explores how ESG practices influence firm profitability and market valuation. Using earnings per share (EPS) and Tobin’s Q as firm value indicators, the study analyses 100 firms. To address endogeneity concerns, it applies the generalized method of moments (GMM). The study also examines the moderating role of firm size in ESG disclosure and performance. The results indicate that increased ESG disclosure enhances firm value, with environmental and governance factors playing a key role. Firm size, return on assets (ROA), and debt-to-equity ratio significantly impact performance. Larger firms exhibit better ESG practices, leading to higher earnings per share. This study confirms the positive relationship between ESG disclosure and firm value, emphasizing environmental and governance aspects. Firm size is a crucial factor influencing ESG adoption and financial outcomes. The study recommends mandatory ESG disclosure frameworks, sector-specific regulations, and incentives to enhance corporate transparency and sustainability. These measures can strengthen firms' market competitiveness and align them with Saudi Arabia’s Vision 2030.

Purpose: The aim of the present work is to investigate the link that exists between the sustainability reporting and financial performance of Saudi Arabia’s manufacturing sector. Concretely, it examines the impact that sustainability disclosure has on Return on Assets (ROA), Return on Equity (ROE), and Financial Leverage (FL). Design/Methodology/Approach: The study employs panel data collected from fifty manufacturing companies operating in the Tadawul Stock Exchange from year 2019 to year 2023. By applying CA method, sustainability-reporting scores obtained from GRI ratios. To measure the effects of sustainability reporting on financial performance of firms, we use Ordinary Least Squares (OLS) and Fixed Effects Models. Findings: Accordingly, the findings indicate a significant positive correlation between sustainability reporting and two corporate performance measures: ROA and ROE, especially among large firms with effective governance mechanisms. Furthermore, sustainable firms have lower financial leverage than less sustainable ones. However, auditor type not found to exert a significant influence on financial performance. Implications/Originality/Value: The study examines Saudi Arabia’s listed manufacturing industry in Tadawul Stock Exchange future research may investigate other industries and new and growing markets for overall generalizability of the findings. Corporate strategists as well as policymakers will learn how sustainability reporting positively influences firms’ financial performance in Line with Saudi Arabia Vision 2030. Sustainability reporting improves the organizational and stakeholder accountability, promoting corporate efficiency and sustainable development, formation of natural resource conservation, and social policies. Originality/value: The current research further fills the research gap with respect to sustainability reporting in emerging economy with a focus on Saudi Arabia manufacturing firms and its evidential support on financial outcomes.

This study investigated the relationship between environmental, social, and governance (ESG) disclosure and the performance of Saudi Arabian companies. We analysed panel data from the 100 non-financial companies listed on the Saudi stock exchange (Tadawul) from 2017 to 2022. Using fixed effects, random effects, and generalised method of moments (GMM) models to account for endogeneity concerns, we examined the impact of ESG disclosure on the return on assets (ROA), return on equity (ROE), and Tobin’s Q. An ESG index was constructed through a principal component analysis of individual environmental, social, and governance scores. Our results indicate a significant positive relationship between ESG disclosure and companies’ key performance variables across all models. These findings are consistent with stakeholder theory and signalling theory, suggesting that comprehensive ESG practices can lead to better financial performance and serve as a positive signal to stakeholders. The study also reveals sector-specific differences, with non-manufacturing firms showing stronger positive relationships between ESG disclosure and performance measures compared to manufacturing firms. Additionally, we find that firm size, age, and liquidity are important factors influencing the ESG–performance relationship. This research contributes to the growing literature on ESG and corporate performance in emerging markets, offering valuable insights for policymakers, investors, and corporate practitioners in Saudi Arabia’s evolving sustainable business landscape. Our findings underscore the importance of ESG disclosure in driving sustainable and responsible business practices in the region.

This study investigated the relationship between environmental, social, and governance (ESG) disclosure and the performance of Saudi Arabian companies. We analysed panel data from the 100 non-financial companies listed on the Saudi stock exchange (Tadawul) from 2017 to 2022. Using fixed effects, random effects, and generalised method of moments (GMM) models to account for endogeneity concerns, we examined the impact of ESG disclosure on the return on assets (ROA), return on equity (ROE), and Tobin’s Q. An ESG index was constructed through principal component analysis of individual environmental, social, and governance scores. Our results indicate a significant positive relationship between ESG disclosure and companies’ key performance variables across all models. These findings are consistent with stakeholder theory and signalling theory, suggesting that comprehensive ESG practices can lead to better financial performance and serve as a positive signal to stakeholders. The study also reveals sector-specific differences, with non-manufacturing firms showing stronger positive relationships between ESG disclosure and performance measures compared to manufacturing firms. Additionally, we find that firm size, age, and liquidity are important factors influencing the ESG–performance relationship. This research contributes to the growing literature on ESG and corporate performance in emerging markets, offering valuable insights for policymakers, investors, and corporate practitioners in Saudi Arabia’s evolving sustainable business landscape. Our findings underscore the importance of ESG disclosure in driving sustainable and responsible business practices in the region.

Purpose: This study aims to establish the interconnection between Digital Leadership, Financial literacy, financial sustainability, and fintech adoption, with a focus on how these constructs interact in an organizational setting, specifically regarding improving leadership and financial performance. Design/Methodology: This study applied a quantitative research design whereby a structured questionnaire was used to collect data from respondents in different business sectors. Regression analysis, alongside hypothesis testing using T-statistics and P-values, was used to determine the coefficients of the relationships between the constructs. Findings: The results indicate a significant positive correlation between the constructs. Financial Literacy increases both Digital Leadership and Financial Sustainability while Fintech Adoption largely raises Digital Leadership and has a moderate effect on Financial Sustainability. The research proves that high levels of Digital Leadership are strongly connected with levels of Financial Sustainability, thus proving the link between these two organizational constructs. Research Limitations/Implications: A cross-sectional study design did not capture the developmental processes of the constructs. Future research should consider longitudinal studies to observe changes and developments as organizations progress in their digital journeys. Studying these constructs in other industries may provide more information about how useful the models are in different settings.

This article explores the role of sustainability reporting and governance in achieving national sustainable development goals. Sustainable development goals focus on economic, societal, and environmental issues and have been set up to address issues regarding environmental degradation, global imbalances, economic instability, social instability, and political instability. Using data from 42 countries over six years, the authors apply panel regression techniques and find a positive relationship between national governance and sustainability reporting; sustainability reporting and national sustainable development goals; sustainability governance and sustainability reporting. We found a negative relationship between national governance and sustainable development goals. Sustainability reporting is also found to mediate between national governance and sustainable development goals. Thus, this paper contributes to the body of existing knowledge by highlighting the role of governance and sustainability reporting in the achievement of sustainable development goals. The findings have several implications for governing bodies and decision-makers in government, including changing the governance model and taking strict actions against companies that fail to focus their attention on sustainability reporting. The findings involve society, business, and other stakeholders in sustainability reporting measures to achieve sustainable development goals.

This study investigates the influence of corporate sustainability performance (CSP) on firm value through investment efficiency. By applying a panel regression analysis using a large sample of 26,838 firm-year observations that represent 9218 Asian listed companies over the period of 2012–2019, we illustrate that high corporate sustainability performance (CSP) increases investment efficiency. This result coincides with both stakeholder theory and information asymmetry theory where economic, environmental, social, and governance involvements play a fundamental role in improving firm value. Our results further show that the social dimension significantly improves investment decisions, unlike dimensions associated with environment and governance, which show no significant effect on investment efficiency. These insights about the impact of CSP on investment decisions will be useful to stakeholders, decision-makers, policymakers, as well as academics to improve their awareness of the importance of corporate sustainability practices. Particularly, the positive relationship between the social dimension of CSP and investment efficiency should motivate managers to improve their corporate social responsibility policy formation and implementation, and the management of investment portfolios in enhancing firm value.

Departing from previous studies, which have mostly focused on Western countries, our work investigates the determinants of the corporate environment, social and governance (ESG) reporting among Asian firms. Examining Asian public listed firms from 2005 to 2017, our cross-sectional model results indicate that firm characteristics (economic performance, profitability, leverage and size) are found to disclose additional ESG information. The outcome is consistent with the legitimacy theory, which posits that firms provide higher ESG reporting to legitimize and justify the firm’s continuous existence. The findings are important for firms, stakeholders and policymakers. While firms may formulate ways to improve ESG reporting to compete in the international market, the stakeholders may pressure firms to disclose more information on ESG and policymakers to designalegal framework on ESG that suits firms in Asia.

Within the environmental, social, and governance (ESG) disclosure–corporate sustainability performance (economic, environmental and social; EES) framework, our empirical analysis examined the impact of ESG information disclosure on EES sustainability performance among Asian firms from 2005 to 2017. The positive ESG disclosure–EES sustainability performance relationship found in this study provides evidence that disclosing the implementation of environment and social strategies within an effective system of corporate governance in the organization strengthens corporate sustainability performance. The results also show that environmental performance and social performance are significantly positively related to economic sustainable performance, indicating that the corporation’s economic value and creating value for society are interdependent. In line with the stakeholder theory and the shared value theory, ESG information disclosure to all stakeholders is an important factor in creating a competitive advantage for enhancing corporate sustainability performance.