Economic Sustainability Through Disclosure: Knowledge Management, Reporting Quality, and Corporate Performance in the Arab Gulf Region
Year: 2026
Type: article
Abstract: This study examines whether sustainability information disclosure (SID) in the Arab Gulf acts as a substantive strategic tool that enhances corporate outcomes or merely serves as a symbolic gesture to maintain legitimacy. Using data from 92 listed firms across the Gulf Cooperation Council (GCC) from 2020 to 2023, the study distinguishes between the level (volume) and quality (credibility) of disclosure. It examines their respective impacts on return on assets (ROA), return on equity (ROE), and financial reporting quality. The results reveal a consistent positive association between disclosure levels and financial performance, suggesting that volume-based corporate environmental, social, and governance (ESG) reporting may support short-term legitimacy and market confidence. In contrast, disclosure quality shows weaker and less consistent effects, highlighting a potential disconnect between visibility and substance. This pattern reflects the strategic use of disclosure for symbolic compliance in the GCC, where ESG reporting is often adopted to satisfy external expectations rather than to support internal transformation or long-term value creation. The findings position sustainability disclosure as an underleveraged tool for strategic knowledge management. While current practices enhance legitimacy, they fall short of driving performance gains through internal learning or reporting integrity. Policy implications include the need for harmonised disclosure frameworks, mandatory assurance standards, and improved alignment with international ESG guidelines to strengthen the credibility and impact of corporate sustainability communication in emerging markets.
Source: Sustainability
DOI: 10.3390/su18031394
Authors: Alessandra Theuma, Ahmad Faisal Hayek
Institution: Higher Colleges of Technology
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $2,896
OpenAlex ID: W7126155657