IDEAS home Printed from https://ideas.repec.org/a/aac/ijirss/v8y2025i2p4078-4090id6232.html
   My bibliography  Save this article

The moderating effect of the board independence on the association between ESG reporting and financial distress

Author

Listed:
  • Abdullah Almutairi
  • Tasneem Alayed
  • Ismail Gaballah Abas Mohammed
  • Ahmed Elmashtawy

Abstract

This research reveals the influence of ESG reporting on financial distress. Moreover, the study examines the moderating influence of board independence between ESG reporting and the financial distress of the Saudi Arabian Exchange. The study used a database of 432 observations from non-financial corporations on the Saudi stock exchange from 2018 to 2023, employing fixed effect models to estimate the study findings. The study results indicate that ESG reporting enhances financial distress. Companies that have ESG reporting are associated with higher financial distress. Furthermore, the results reveal that board independence moderates the nexus between ESG reporting and financial distress. The study's originality resides in exploring the moderating role of board independence on the association between ESG reporting and financial distress, utilizing a sample from Saudi companies. This research offers companies, policymakers, and stakeholders practical insights to mitigate financial distress. The study encourages companies to adopt ESG reporting, thereby enhancing their financial performance.

Suggested Citation

  • Abdullah Almutairi & Tasneem Alayed & Ismail Gaballah Abas Mohammed & Ahmed Elmashtawy, 2025. "The moderating effect of the board independence on the association between ESG reporting and financial distress," International Journal of Innovative Research and Scientific Studies, Innovative Research Publishing, vol. 8(2), pages 4078-4090.
    • Handle: RePEc:aac:ijirss:v:8:y:2025:i:2:p:4078-4090:id:6232
    as

    Download full text from publisher

    File URL: https://ijirss.com/index.php/ijirss/article/view/6232/1176
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aac:ijirss:v:8:y:2025:i:2:p:4078-4090:id:6232. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Jean (email available below). General contact details of provider: https://ijirss.com/index.php/ijirss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.