Do Corporate Risks and Profitability Affect Sustainability Disclosure? Evidence from the Saudi Business Environment

This research examines the impact of corporate risk and profitability on sustainability (SD) disclosure, using evidence from banks listed on the Saudi Stock Exchange (Tadawul) during the period 2014–2018. Banks represent an essential sector of the country's economy and a focus of researchers. The results show that bank risk negatively impacts sustainability disclosure. We also find that sustainability disclosure is not significantly affected by bank profitability. This finding helps clarify the determinants of sustainability disclosure, which have been and continue to be a source of disagreement among researchers, namely risk and profitability. This helps assess the factors influencing sustainability disclosure. Consequently, it impacts user decisions, such as investment decisions and credit granting.