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Lookup NU author(s): Professor Habiba Al-ShaerORCiD
This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0).
Purpose- We argue that firms that have a sustainability committee operating on the board, publish separate sustainability reports that are externally assured by an independent external audit, and have large and active boards are more likely to be engaged in environmental practices and have better environmental performance. Design/methodology/approach- Based on a sample of firms listed on the Saudi Stock Exchange, covering the period 2014–2021, we apply panel data models to examine the research hypotheses. Findings- Our findings show significant positive associations between the existence of sustainability committee, the publication of a separate sustainability reports, and the independent external assurance of these reports and environmental performance. We also find that the composite internal governance index is significant and positively associated with environmental performance. Practical implications- Policy makers should support the creation of sustainability committee on the boards of Saudi firms and review its role and responsibilities. Our findings inform regulators of the importance of the existence of independent external assurance of sustainability reports of Saudi firms to enhance the credibility and reliability of these reports. Managers need to establish devoted committees committed to sustainability related tasks that help coordinate communications between the firm and stakeholders. Originality/value- The Saudi Arabia government has implemented a range of policies and initiatives aim to improve environmental performance which is a main focus of Saudi Vision 2030 to achieve environmental sustainability. Therefore, we provide a unique evidence and new insights on impact of internal governance on corporate environmental performance in the Saudi context.
Author(s): Alwadani N, Al-Shaer H, Albitar K
Publication type: Article
Publication status: Published
Journal: International Journal of Accounting & Information Management
Year: 2024
Volume: 32
Issue: 1
Pages: 40-57
Print publication date: 19/01/2024
Online publication date: 28/11/2023
Acceptance date: 20/10/2023
Date deposited: 28/11/2023
ISSN (electronic): 1834-7649
Publisher: Emerald
URL: https://doi.org/10.1108/IJAIM-04-2023-0084
DOI: 10.1108/IJAIM-04-2023-0084
ePrints DOI: 10.57711/46z6-af02
Data Access Statement: Availability of data and material (data transparency): Data are available from the authors upon reasonable request
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