The effect of board culture diversity on ESG disclosure: Evidence from the Kingdom of Saudi Arabia

Abstract

This study examines the influence of board culture diversity on Environmental, Social, and Governance (ESG) disclosure within the context of the Kingdom of Saudi Arabia (KSA). Drawing on a sample of 762 observations spanning from 2016 to 2021, a content analysis approach was employed to collect ESG disclosure scores. The results suggest a positive impact of board culture diversity on ESG disclosure. To reinforce the validity of these findings, robustness tests, including a lag model and an alternative proxy model, were conducted. Moreover, potential endogeneity concerns were addressed using a two-stage least squares (2SLS) analysis, strengthening the study's reliability. This research contributes to the literature on the interplay between corporate board diversity and ESG reporting practices, especially within the specific context of the KSA-listed companies.