Financial reporting quality, corporate law compliance, and shareholder value: Evidence from Saudi joint-stock firms

The subject of discussion in this research paper is the effect of reporting quality on shareholder value in Saudi joint stock companies. Though there are some international papers on the influence of audit oversight and international financial reporting standards (IFRS) on reporting quality, there is a scarcity of empirical studies on the topic among Saudi joint stock companies (Doan et al., 2026; Osemy, 2025). It should be noted that financial statements are developed with the interests of shareholders, the key users of accounting information, in mind (Alshammari, 2025; Al Sharif, 2026; Lampiris et al., 2025; Tran & Dang, 2026). Data were collected via structured questionnaires from 504 people. Then, these data were analyzed using techniques such as descriptive statistics, t-tests, and simple linear regression. Good-quality financial reporting has a positive influence on decision-making of the shareholders, increases their confidence, and allows maximizing their profit. Simple linear regression analysis reveals that there is a significant positive correlation between the two variables under consideration. The findings of the study are consistent with Vision 2030, as they increase financial transparency and corporate governance in Saudi capital markets. Concerning this issue, Doan et al. (2026) and Osemy (2025) point to the absence of empirical studies among Saudi joint stock companies on the influence of IFRS and audit oversight. Furthermore, Alshammari (2025), Al Sharif (2026), Lampiris et al. (2025), and Tran and Dang (2026) confirm that financial statements serve the interests of shareholders, the key users of accounting information.