Corporate Governance, Fintech Adoption, and ESG Disclosure in Saudi Banks

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides empirical evidence on the mediating role of fintech adoption in the governance-ESG disclosure nexus, useful for mechanism-based research.

🏢実務担当者:Highlights that investing in digital capabilities can enhance ESG disclosure quality, informing corporate strategy for disclosure infrastructure.

🏛政策担当者:Suggests that promoting digital infrastructure alongside governance reforms can strengthen ESG reporting, relevant for regulatory design.

This study examines how corporate governance influences ESG disclosure in Saudi listed banks and whether fintech adoption acts as an enabling channel in this relationship. Drawing on agency theory, stakeholder theory, and dynamic capabilities theory, the study argues that governance structures do not shape ESG disclosure only through direct monitoring and oversight, but also by supporting the development of digital capabilities that improve information processing, transparency, and reporting. Using panel data for all Saudi listed banks from 2015 to 2024, the study constructs a composite corporate governance index and a bank-level fintech adoption index based on annual report disclosures. Panel EGLS results show that stronger corporate governance is positively associated with overall ESG disclosure, especially the social and governance pillars, while the direct effect on environmental disclosure is positive but not statistically significant. Fintech adoption is positively associated with overall ESG disclosure and all three ESG pillars. Mediation results further show that fintech adoption partially transmits the effect of governance on overall ESG disclosure, and fully to partially coveys the effects of CG on each of the ESGD pillars. This suggests that digital capability is an important mechanism through which governance structures are translated into ESG reporting outcomes. The study contributes to international financial management and accounting literature by offering a mechanism-based explanation of the governance-ESG disclosure relationship in an emerging market setting. It also provides evidence from Saudi Arabia, where governance reform, digital transformation, and sustainability reporting have advanced simultaneously under Vision 2030. The findings have implications for regulators, boards, and investors interested in strengthening ESG disclosure through both governance and digital infrastructure.

• openaire https://doi.org/10.2139/ssrn.6867200first seen 2026-08-04 04:46:50