Board Composition and Environmental, Social, and Governance Reporting: Impact of Foreign and Busy Directors in Saudi-Listed Firms

This study investigates the impact of board composition, specifically the presence of non-Saudi members and board busyness, on environmental, social, and governance (ESG) disclosure among Saudi-listed companies, an area of increasing importance in the context of global sustainability and corporate responsibility. As businesses face growing pressures to enhance transparency and accountability, understanding the factors that influence ESG reporting becomes crucial. This research specifically focuses on the presence of non-Saudi members and board busyness, examining how these characteristics affect ESG disclosures amidst recent corporate governance reforms in Saudi Arabia. Utilizing a balanced panel dataset of 40 non-financial firms covering the period from 2017 to 2022, we aim to understand how these board characteristics influence ESG reporting in the context of recent corporate governance reforms in Saudi Arabia. Our findings indicate that the presence of non-Saudi board members and board busyness significantly enhance ESG disclosure, while board independence shows no significant relationship. The 2017 corporate governance reforms strengthened the impact of non-Saudi members and busy directors on ESG practices, highlighting the importance of regulatory frameworks in promoting sustainability. This study provides empirical evidence from an emerging market and offers practical implications for policymakers, managers, and investors.