Corporate social responsibility disclosure in Saudi companies: analysing the impact of board independence in family and non-family companies

This study investigates the relationship between family-controlled companies and corporate social responsibility practice disclosure (CSRPD) in Saudi Arabia, examining the influence of board independence on this relationship. Using data from 152 publicly listed companies between 2016 and 2021, the study finds that family-controlled companies exhibit lower CSRPD than non-family companies. However, a higher number of independent directors on the board of family-controlled companies significantly increases their CSRPD. This positive interaction effect is robust across various econometric techniques. The findings highlight the importance of board governance structures, especially independent directors, in promoting CSR in Saudi family businesses and underscore the need for regulatory awareness of these governance structures.

Ameen Qasem, Bazeet Olayemi Badru, Belal Ali Ghaleb, Shaker Dahan AL-Duais, Adel Ali Al-Qadasi