Abstract
Corporate governance literature acknowledges the important role of the existence and structure of the standing board committees, such as the audit, nomination, and compensation committees, in enhancing board effectiveness and thus corporate disclosure. Previous empirical studies on the relationship between corporate governance mechanisms and corporate risk disclosure (CRD) practices have mostly focused on board characteristics as key drivers of CRD. However, less attention has been paid to the potential role of board sub-committees on the level of CRD. To the best of the researchers' knowledge, no prior research has examined the relationship between board committees and the level of CRD. Therefore, this study investigates the association between the existence and structure of board committees, such as the audit, nomination, and compensation committees and the level of CRD in Saudi listed companies. The study employs ordinary least squares and panel data analyses of the annual reports of Saudi listed companies for the years 2008-2011. The results show a positive influence of the presence and size of the nomination and compensation committee and meeting frequency of audit committee on CRD. However, no evidence on the impact of audit committee size, nomination and compensation committee independence, and meeting frequency. The current study contributes to filling the gap in the literature by investigating the role of further aspects of corporate governance on CRD. This study confirms the adoption of a coherent theoretical framework using a combination of disclosure theories to better explain the phenomenon of CRD and its determinants in Saudi Arabia. The study has important implications including provide vital input to policy makers, regulatory authorities, and practitioners in Saudi capital market and GCC markets and other emerging markets to improve CRD practices, optimize the structure of board committees, and enhance corporate governance effectiveness. (C) 2019 The Authors. Published by IASE.