New research: Independent and experienced audit committee chairs significantly enhance ESG disclosure levels among Saudi companies.

A study recently published in Humanities and Social Sciences Communications shows that in Saudi Arabia, an emerging market, independent and experienced audit committee chairs can significantly improve the quality of corporate environmental, social, and governance (ESG) disclosure. Based on an empirical analysis of 243 firm-year observations from 2014 to 2023, the study also found that Saudi Arabia's corporate governance reforms introduced under the "Vision 2030" framework further strengthened the impact of positive characteristics and mitigated the negative effects of multiple directorships.

Research Background

With the growing popularity of ESG concepts, corporate transparency has increasingly become a focus of attention for investors and regulators. As a core mechanism of corporate governance, the audit committee plays a key role in ensuring the quality of financial and non-financial information disclosure. The leadership of the audit committee chair is regarded as an important factor affecting the effectiveness of the committee's oversight, and its independence, professional experience, and concurrent positions may be directly related to the transparency of ESG disclosure.

Key Findings

The research team conducted a systematic analysis of data from Saudi listed companies using fixed-effects regression models, focusing on the impact of audit committee chairs' independence, experience, and interlocking director identities (i.e., serving on the boards of multiple companies simultaneously) on ESG disclosure. The results show:

• Independent and experienced audit committee chairs can significantly improve ESG disclosure quality;
• Interlocking director roles have a negative impact on ESG disclosure transparency;
• The corporate governance reform launched by Saudi Arabia in 2017 (as part of the "Vision 2030" initiative) has a significant moderating effect, enhancing the positive effects of independence and experience while weakening the negative effects of multiple directorships.

Research Significance

The study points out that this is the first study to examine the relationship between audit committee chair characteristics and ESG disclosure in the Saudi market while incorporating the moderating role of governance reforms, providing actionable recommendations for enterprises and policymakers in emerging markets. Improving governance practices and leveraging the key leadership role of the audit committee chair can help companies align with international standards, attract international capital, and promote the achievement of the United Nations Sustainable Development Goals (SDGs), including fostering economic growth, reducing inequality, and protecting the environment.

Study Information

The study was published in Humanities and Social Sciences Communications, Volume 13, Article number 390 (2026). The full text is available at: https://www.nature.com/articles/s41599-026-06536-1