Bridging Governance and Integrity: The Consequence of CSR Committee and Audit Committee Characteristics on Anti‐Corruption Disclosure in Saudi Arabia

Abstract

The current article tends to examine the effect of Corporate Social Responsibility (CSR) committee and audit committee characteristics on anti‐corruption disclosure quality (ACDQ) among listed firms in Saudi Arabia. Understanding corporate governance's impact on ACDQ becomes crucial with ongoing governance reforms like establishing the National Anti‐Corruption Commission (Nazaha). Our study uses a data consists of 117 non‐financial firms from 2016 to 2023, making it a total of 936 firms‐ observations. Our study showed that the existence of a CSR committee has a positive impact and significantly associated with ACDQ. Also, the findings show that audit committee characteristics (size, independence, and rotation) positively influence ACDQ. However, audit committee expertise does not exhibit a significant impact on ACDQ. Our outcomes assert that firms with well‐structured CSR and audit committees demonstrate greater transparency in their ACDQ. Our paper contributes to CSR and corporate governance literature by delivering empirical evidence from an emerging market context, where governance reforms are evolving rapidly. It extends prior literature by examining the influence of CSR and audit committee characteristics on ACDQ. The findings enhance the understanding of corporate governance mechanisms to endorse transparency and accountability within firms. This study offers invaluable insights for regulators, corporate leaders, and policymakers to strengthen governance mechanisms and anti‐corruption efforts in alignment with Saudi Arabia's Vision 2030. Our paper highlights the crucial role of corporate governance in fostering transparency and informs future policy development to enhance ethical business conduct.