Institutional reforms and corporate social responsibility disclosure: evidence from Saudi Arabia’s Vision 2030

Purpose This study aims to examine how coordinated state-led institutional reforms, Saudi Arabia’s Vision 2030 and the Corporate Governance Regulations (CGR) 2017, have influenced corporate social responsibility disclosure (CSRD) by listed companies, distinguishing between direct reform effects and indirect effects operating through firm-level governance characteristics. Design/methodology/approach Using structural equation modeling and panel data from 440 observations of Saudi-listed companies (2014−2019), the study analyzes the early phase of reform implementation. Drawing on the institutional theory, it evaluates how macro-level institutional change shapes CSRD directly and indirectly through selected governance characteristics. Findings The results indicate a strong and statistically significant direct increase in CSRD following the introduction of Vision 2030 and CGR 2017, even after controlling for firm characteristics. Indirect effects are selective: governance characteristics explicitly targeted or strongly encouraged by the reform agenda, particularly female employment, are associated with higher CSRD, while more deeply embedded board characteristics exhibit limited or insignificant change during the sample period. Research limitations/implications This study contributes to the broader CSR literature by demonstrating how established Western-origin theories, particularly institutional theory, can be applied to non-Western settings through careful contextual interpretation rather than theoretical replacement. Practical implications The findings offer insights for policymakers on how strategic reform agendas and regulatory coordination can promote CSRD while also highlighting the limits of short-term governance change in contexts characterized by persistent informal institutions. Social implications This study highlights the role of employment-based reforms in supporting CSR objectives during periods of institutional transition. Originality/value This study provides one of the first large-sample empirical examinations of how coordinated, state-led institutional reforms influence CSRD through both direct and indirect channels. By distinguishing between immediate disclosure responses and slower-moving governance adjustments, the study contributes to the CSR and institutional literature by clarifying how reform intensity, sequencing and institutional persistence shape corporate behavior in emerging economies. Beyond Saudi Arabia, the findings contribute to the CSR literature by demonstrating how coordinated state-led reform agendas influence disclosure through signaling and legitimacy mechanisms rather than immediate structural change.

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Publication Details

Journal
Pacific Accounting Review
Published
2026-05-11
DOI
https://doi.org/10.1108/par-07-2025-0128
Primary Topic
Corporate Social Responsibility Reporting
Type
article
Field-Weighted Citation Impact
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article

Institutional reforms and corporate social responsibility disclosure: evidence from Saudi Arabia’s Vision 2030

Alan Farley, Hong (Helen) Yang, Khalid Mujahid Alharbi
Pacific Accounting Review
Corporate Social Responsibility Reporting
article

Institutional reforms and corporate social responsibility disclosure: evidence from Saudi Arabia’s Vision 2030

Alan Farley, Hong (Helen) Yang, Khalid Mujahid Alharbi
article en

Abstract

Purpose This study aims to examine how coordinated state-led institutional reforms, Saudi Arabia’s Vision 2030 and the Corporate Governance Regulations (CGR) 2017, have influenced corporate social responsibility disclosure (CSRD) by listed companies, distinguishing between direct reform effects and indirect effects operating through firm-level governance characteristics. Design/methodology/approach Using structural equation modeling and panel data from 440 observations of Saudi-listed companies (2014−2019), the study analyzes the early phase of reform implementation. Drawing on the institutional theory, it evaluates how macro-level institutional change shapes CSRD directly and indirectly through selected governance characteristics. Findings The results indicate a strong and statistically significant direct increase in CSRD following the introduction of Vision 2030 and CGR 2017, even after controlling for firm characteristics. Indirect effects are selective: governance characteristics explicitly targeted or strongly encouraged by the reform agenda, particularly female employment, are associated with higher CSRD, while more deeply embedded board characteristics exhibit limited or insignificant change during the sample period. Research limitations/implications This study contributes to the broader CSR literature by demonstrating how established Western-origin theories, particularly institutional theory, can be applied to non-Western settings through careful contextual interpretation rather than theoretical replacement. Practical implications The findings offer insights for policymakers on how strategic reform agendas and regulatory coordination can promote CSRD while also highlighting the limits of short-term governance change in contexts characterized by persistent informal institutions. Social implications This study highlights the role of employment-based reforms in supporting CSR objectives during periods of institutional transition. Originality/value This study provides one of the first large-sample empirical examinations of how coordinated, state-led institutional reforms influence CSRD through both direct and indirect channels. By distinguishing between immediate disclosure responses and slower-moving governance adjustments, the study contributes to the CSR and institutional literature by clarifying how reform intensity, sequencing and institutional persistence shape corporate behavior in emerging economies. Beyond Saudi Arabia, the findings contribute to the CSR literature by demonstrating how coordinated state-led reform agendas influence disclosure through signaling and legitimacy mechanisms rather than immediate structural change.

Pacific Accounting Review
La Trobe University (AU), Taibah University (SA)
Gender equality
Openalex Percentile: Top 6%
Corporate Social Responsibility Reporting
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