When Disclosure Reveals and Conceals: Differential Effects of Environmental, Social, and Governance Pillars on Earnings Management in Saudi Arabia's Vision 2030 Era
This study of Saudi Arabian firms reveals that ESG pillars exert divergent effects on earnings management—where governance constrains, environmental disclosure acts as camouflage for unprofitable firms but constrains profitable ones, and social disclosure remains neutral—highlighting how firm profitability and mandatory regulation critically reshape these relationships beyond aggregate ESG measures.