The Impact of Board Members Independence on the Relationship between Financial Inclusion and Social Responsibility:  An Applied Study on Saudi Banks

Hamouda, Manal Mohamed Kamel; Bakr, Sarah Abdullah; Yamani, Amal Mohamed; Alamoudi, May Abdel Aziz

doi:10.21608/aljalexu.2025.455260

The Impact of Board Members Independence on the Relationship between Financial Inclusion and Social Responsibility: An Applied Study on Saudi Banks

Document Type : Original Article

Authors

¹ Department of Accounting, Faculty of Economics and Administration, King Abdulaziz University, Jeddah, Kingdom of Saudi Arabia

² Department of Accounting - Faculty of Economics and Administration - King Abdulaziz University - Jeddah - Kingdom of Saudi Arabia

10.21608/aljalexu.2025.455260

Abstract

This study aimed to investigate the impact of financial inclusion indicators on the social responsibility performance of Saudi banks, and to identify the impact of board members' independence as a moderating variable on the relationship between them. To achieve the study's objectives, data from banks was collected over a 10-year period (2014-2023), from annual reports listed on the Saudi Stock Exchange in addition to data from the Saudi Central Bank. The study relied on the multiple linear regression method to test the study's hypotheses. The findings of the study concluded that there is a significant positive impact of financial inclusion indicators, represented by the number of automated teller machines (ATMs) and the distribution of points of sale (POS) on social responsibility performance, in addition to the presence of a significant positive impact of the bank's age as a controlling variable on social responsibility performance. The findings also indicated a significant positive impact of board members' independence as a moderating variable on the relationship between financial inclusion indicators and social responsibility performance of Saudi banks. The study recommended increasing the awareness among individuals and organizations about the importance of financial inclusion and its impact on the business environment and its contribution to its development. It also recommended that decision-makers, policymakers, stakeholders, and board members be aware of the diversity mechanisms that should be used to enhance corporate social responsibility practices in the banking sector in the Kingdom of Saudi Arabia.

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