CORPORATE GOVERNANCE AND FINANCIAL TRANSPARENCY IN SAUDI COMPANIES LISTED IN TADAWUL: A QUANTITATIVE PANEL STUDY

Abstract

This study examines how internal governance structures shape the degree of financial openness among non-financial enterprises quoted on the Saudi Stock Exchange. Grounded in agency theory (AT), stakeholder theory (ST), and institutional theory (IT), the analysis utilises a rare multi-year panel covering 38 entities from 2011 to 2022, offering one of the limited longitudinal assessments of governance–disclosure dynamics within the Gulf setting. Using fixed-effects estimations, the inquiry finds that an expanded board, a higher proportion of independent directors, a more functional audit committee, dispersed shareholding, and greater diversity in board composition all contribute materially to stronger voluntary financial reporting. Collectively, these mechanisms account for a notable share of the variance in firms’ transparency outcomes. Conversely, the combination of chief executive and chair roles does not exhibit a meaningful statistical effect, implying that concentrated leadership responsibilities may be offset by other institutional or cultural controls operating in Saudi Arabia. Overall, the evidence highlights that enhancing the monitoring capacity, heterogeneity, and audit-related capabilities of boards is pivotal for elevating disclosure standards. At the regulatory level, the results align with the ambitions of Vision 2030, reinforcing the case for industry-tailored governance frameworks, strengthened supervisory functions, and professional development programmes aimed at embedding transparency as a fundamental organisational practice.