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Statistical Analysis of Sustainability Information Disclosure on Financial Reports Quality in Saudi Listed Firms |
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PP: 717-731 |
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doi:10.18576/jsap/150324
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Author(s) |
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Rabab Hamdy Abdalhamid,
Basma Medhat Farahat,
Abdalaziz M. Alhaggan,
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Abstract |
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| This study examines the relationship between sustainability information disclosure and financial reporting quality
in Saudi listed firms. The analysis uses panel data from 190 firm-year observations of nonfinancial companies listed on the Saudi Exchange (Tadawul) over the period 2023–2025. Sustainability disclosure is measured through an ESG index covering environmental, social, and governance dimensions. Financial reporting quality is captured using total accruals as an accounting-based measure and the market-to-book ratio as a market-based measure. The results show a significant association between sustainability disclosure and accrual-based reporting behavior, indicating that higher ESG disclosure is linked to greater accrual intensity. In contrast, sustainability disclosure does not exhibit a significant relationship with market-based valuation measures, which are primarily driven by firm fundamentals. These findings highlight the multidimensional nature
of financial reporting quality and provide Saudi-specific evidence on the reporting implications of sustainability disclosure. |
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