STATISTICAL ANALYSIS TO MEASURE
THE ROLE OF ACCOUNTING
DISCLOSURE ON CARBON NEUTRALITY
IN THE RELATIONSHIP BETWEEN AUDIT
COMMITTEES AND FINANCIAL
REPORTING QUALITY: EVIDENCES FROM
THE SAUDI STOCK MARKET
Moustafa Zaki Metwalli
Abstract: This study investigates the relationship between audit committee characteristics and financial reporting quality (FRQ) among non-financial firms listed on the Saudi Exchange, while examining the moderating role of carbon neutrality disclosure. The analysis relies on a balanced panel dataset covering 160 firms over the period 2019-2024, resulting in 800 firm-year observations. Data are obtained from annual reports, sustainability reports, and the Mubasher database. Audit committee characteristics are measured through committee independence, size, and meeting frequency, whereas FRQ is proxied by accounting conservatism using the market-to-book ratio. Carbon neutrality disclosure is captured using a disclosure-based index reflecting the extent of firms' carbon-related and carbon-neutrality reporting. The empirical models control for firm size, leverage, profitability, and sector classification. Overall, the study highlights the importance of effective audit committee structures and sustainability transparency in shaping the quality of financial reporting, and it contributes to the governance and sustainability literature by providing evidence from the Saudi market.
Keywords: Accounting Disclosure on Carbon Neutrality, Audit Committees, Financial Reporting Quality
DOI: 10.24874/IJQR20.03-08
Recieved: 10.02.2026 Accepted: 28.07.2026 UDC:
Reads: 37 
