The Impact of Audit Committee Characteristics on ESG

In light of the growing significance of sustainability objectives and their connection with future economic landscapes, and considering the fundamental role of audit committees in the financial reporting environment, this study aims to measure the impact of audit committees characteristics on the level of disclosure of Environmental, Social, and Governance (ESG) practices in the annual reports of companies listed on the Saudi financial market. This study utilizes the ESG index compiled by Bloomberg, which measures companies' disclosure levels for this purpose. Due to data availability, the sample includes 44 companies listed on the main market during the period from 2017 to 2021. Using multiple regression analysis, this study shows a positive impact of the independence, size, and financial expertise of audit committees on the level of disclosure of ESG practices. Additionally, the results show a negative impact of the number of audit committee meetings on the level of disclosure of ESG practices. KEYWORDS accounting, financial expertise, independence, quality, size, sustainability