Firm Characteristics, Ownership Structure, and Sustainability Reporting: Evidence from Saudi Listed Firms

HRMARS - This study examines the extent of sustainability reporting and its determinants among firms listed on the Saudi Exchange. Sustainability reporting has become a key mechanism through which organizations communicate their environmental, social, and governance (ESG) commitments to stakeholders. While sustainability reporting has expanded significantly in developed economies, empirical evidence from emerging markets remains limited. Saudi Arabia offers an important context for such an investigation, particularly given the growing emphasis on sustainability under the country’s Vision 2030 agenda. Using a comprehensive dataset of non-financial Saudi listed firms, this study evaluates the level of sustainability reporting and investigates the firm-level and governance factors that influence these practices. Drawing on theoretical perspectives from legitimacy and stakeholder theory, the analysis explores how corporate characteristics and governance structures shape reporting practices. The findings reveal that sustainability reporting among Saudi listed companies remains relatively limited and uneven across firms, reflecting the early stage of institutional development in sustainability reporting. At the same time, several governance and firm-specific characteristics are found to significantly influence disclosure levels. These results suggest that while regulatory reforms and national development strategies have increased awareness of sustainability, corporate reporting practices continue to evolve. The study contributes to the growing literature on sustainability reporting in emerging markets by providing systematic evidence from Saudi Arabia. It also offers practical insights for policymakers, regulators, and corporate leaders seeking to strengthen transparency and promote more consistent sustainability reporting practices.