The effect of family and foreign ownership on environmental, social and governance (ESG) performance: evidence from Saudi-listed firms in light of Vision 2030

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

🔬研究者:Provides empirical evidence on ownership-ESG dynamics in a non-Western context, useful for comparative corporate governance studies.

🏢実務担当者:Offers insights for firms with mixed ownership on how family vs foreign investors may influence ESG priorities.

🏛政策担当者:Highlights how national reforms (Vision 2030) interact with ownership structures to affect ESG practices, relevant for emerging market regulators.

In Saudi Arabia, the dynamics between family and foreign ownership in the business landscape are shaped by the country’s regulatory environment. Family businesses are characterised by strong family ties, long-term planning and a focus on legacy. Also, foreign ownership is growing rapidly due to economic reforms and liberalisation. This study aims to investigate the influence of family and foreign ownership on firms’ environmental, social and governance (ESG) performance in Saudi Arabia. This study also examines the moderating effect of board structure on investment choices related to the ESG of family and foreign ownership that exists within the Saudi capital market. This study uses data from 101 companies listed on the Saudi Stock Exchange covering the period 2016–2022. The authors collect ESG scores, foreign and family ownership and board structure variables from the Refinitiv Eikon database. The authors use ordinary least squares regression to conduct the results. The results show a significant and positive association between family ownership and ESG performance. In contrast, foreign ownership is significant and negatively associated with ESG performance. Board structure reinforces the negative association between foreign ownership and ESG performance. However, it has no moderating role on the positive impact of family ownership on ESG performance. Unlike prior studies that provided a more holistic view of the role of the ownership structure of a company in enhancing disclosure and governance practices in the Saudi context, this study focuses on two distinct categories of ownership, i.e. family and foreign ownership, and examines their effect on ESG performance. This study aims to provide an empirical investigation of the Saudi-listed firms in light of Vision 2030. Evidence highlights the unique cultural, institutional and regulatory context of Saudi Arabia. While family owners may prioritise social responsibility, foreign investors tend to prioritise short-term financial returns over long-term ESG goals. Vision 2030 is a key driver of ESG adoption, but challenges remain, and it will require some time to align local practices with global expectations.

• semanticscholar https://doi.org/10.1108/jfra-09-2025-0787first seen 2026-07-18 08:15:00