Determinants of corporate social and environmental voluntary disclosure in Saudi listed firms

Abstract

Purpose

This paper aims to examine firm characteristics and ownership structure determinants of corporate social and environmental voluntary disclosure (CSEVD) practices in Saudi Arabia to address the paucity of research in this field for Saudi listed firms.

Design/methodology/approach

The paper uses manual content and regression analyses for online annual report data for Saudi non-financial listed firms over the period 2016–2018 using CSEVD items drawing on global reporting initiative-G4 guidelines.

Findings

Models show that Saudi firm CSEVD has increased over time compared to previous studies to an average of 68% disclosure due to new corporate governance regulations and IFRS implementation. The models show that firm size, leverage, manufacturing industry type and government ownership are positive determinants of CSEVD, while family ownership is the negative driver of CSEVD. However, firm profitability, audit firm size, firm age and institutional ownership have no impact on the level of CSEVD.

Originality/value

Using legitimacy and stakeholder theories, the paper determines the influence of firm characteristics and ownership structure on CSEVD, identifying implications for firm stakeholders and providing some evidence on the impact of corporate governance regulation and IFRS implementation on such disclosure. The paper provides additional evidence on progress towards Saudi’s Vision 2030.

Citation

Boshnak, H.A. (2022), "Determinants of corporate social and environmental voluntary disclosure in Saudi listed firms", Journal of Financial Reporting and Accounting, Vol. 20 No. 3/4, pp. 667-692. https://doi.org/10.1108/JFRA-05-2020-0129