The effectiveness of corporate governance on corporate social responsibilities performance and financial reporting quality in Saudi Arabia's manufacturing sector

Abstract

The aim of the study is to determine the effectiveness of corporate governance on corporate social responsibility (CSR) performance and financial reporting quality in Saudi Arabia's manufacturing sector. The data is collected through the database of Thomson Reuters from 30 manufacturing companies of Saudi Arabia over the period 2014-2020. Descriptive statistics and the generalized least square (GLS) model were applied. The dependent variable was calculated through residuals and was found as discretionary accruals (DA). The findings reveal that there was a positive influence of corporate governance on CSR performance and financial reporting quality. It was found that sample size was one of the biggest limitations because only data from 2014 to 2020 were collected and to make the study more reliable and authentic, larger data is required.