Work

The Sustainability–Liquidity Nexus: Insight of ESG Disclosure and Working Capital from Saudi Listed Firms

Year: 2026

Type: article

Abstract: This study investigates the influence of working capital determinants on ESG disclosure. Using data on Saudi listed firms for 2018–2022, we find that working capital is generally positively associated with a firm’s ESG disclosure. Furthermore, we observe that the positive association between working capital and ESG disclosure exists predominantly in larger firms and during the COVID-19 pandemic. Additionally, we find that during the COVID-19 pandemic, firms exhibited superior equity, debt, and cash holdings, which enhanced sustainability reporting practices. Our research provides imperative evidence about the effect of working capital on ESG disclosure from a risk management and financial flexibility perspective in emerging markets.

Source: Journal of risk and financial management

DOI: 10.3390/jrfm19070479

Authors: Waleed S. Alruwaili, Mahdi Alhamami, Bandar Alanazi

Institutions: Northern Border University, Najran University

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $1,689