Audit committee chairman characteristics and governance reform jointly influence the ESG disclosure levels of Saudi enterprises.

Globally, ESG (Environmental, Social, and Governance) disclosure is becoming a core metric for measuring corporate transparency and sustainability. A latest study officially published in 2026 in the international academic journal *Humanities and Social Sciences Communications*, focusing on Saudi Arabia, an important emerging market, reveals how the personal characteristics of audit committee chairs influence corporate ESG disclosure quality, and verifies the moderating role of national-level corporate governance reforms.

Research Background

As investors, regulators, and the public increasingly demand corporate responsibility, ESG disclosure has become an important tool for companies to build mutual trust with stakeholders. As a key governance mechanism overseeing the integrity of financial and non-financial reporting, the audit committee chair's independence, professional expertise, and external directorships may directly affect the depth and quality of ESG information disclosure.

Research Overview

Using a sample of 243 firm-year observations from Saudi listed companies between 2014 and 2023, the study employs fixed-effects regression models to systematically analyze the relationships between audit committee chair independence, experience, interlocking directorships, and ESG disclosure quality, and examines the moderating effect of Saudi Arabia's 2017 corporate governance reforms under the "Vision 2030" framework.

Key Findings

• Independent and experienced audit committee chairs can significantly improve the quality of corporate ESG disclosure. Independence ensures the chair's objectivity and fairness in the oversight process, providing conditions to avoid management interference; while relevant professional experience helps them deeply evaluate complex ESG issues.
• Interlocking directorships (i.e., serving as a director in multiple companies) have a negative impact on ESG disclosure transparency. Excessive external commitments may weaken the chair's dedication to a single company's governance affairs, thereby affecting disclosure quality.
• Saudi Arabia's 2017 corporate governance reforms played a significant moderating role. The reforms strengthened the positive impact of independent and experienced chairs on corporate ESG disclosure, while effectively mitigating the negative effect of interlocking directorships. This indicates that an appropriate institutional environment can amplify the role of individual leadership characteristics.

Research Significance

The study provides practical insights for companies and policymakers in emerging markets. Supported by institutional reforms, selecting independent, professionally experienced audit committee chairs can help improve corporate ESG performance, attract international investors, promote sustainable operations, and align with global best practices. At the same time, higher-quality ESG disclosure will also enhance corporate responsibility, stakeholder trust, and contribute to the achievement of the United Nations Sustainable Development Goals.

Research Contributions

According to the authors, this study is the first empirical research to simultaneously examine the relationship between audit committee chair characteristics, corporate governance reforms, and ESG disclosure in the context of Saudi Arabia. Its conclusions not only have direct reference value for Saudi Arabia, but also provide empirical evidence for other emerging markets promoting similar reforms.

Original link: https://www.nature.com/articles/s41599-026-06536-1