International Journal of Innovation, Creativity and Change. www.ijicc.net Volume 15, Issue 6, 2021 392 Corporate Governance and Quality of Financial Reporting of Listed Firms: Evidence from Saudi Arabia Marwa A. Alsaadi 1 , Bashir Tijjani 2 , Khalid I. Falgi 3 , 1,2,3 Department of Accounting, College of Business Administration, Imam Abdul Rahman bin Faisal University, Dammam, Saudi Arabia. This paper examines the impact of applying corporate governance (CG) mechanisms on the quality of financial reports of listed financial firms in Saudi Arabia. The focus is on how quality of financial reporting (QFR) is affected by board independence, board size, audit committee independence, audit committee size, and ownership structure of listed financial firms. The study uses financial statistics from the annual reports and accounts of a sample of 18 financial firms listed in the Saudi Stock Exchange over the period 2012 to 2017. QFR is measured using discretionary accruals of the modified Jones model (Dechow et al., 1995). The findings revealed a statistically positive significant impact of board independence, audit committee independence and ownership structure on QFR. On the other hand, results showed a statistically insignificant impact of the size of the board and audit committee on QFR. Results support arguments of the stakeholder theory that having high institutional shares in listed firms motivates internal stakeholders to disclose high quality financial reports. The Saudi economy is being opened for large foreign investments in line with its Vision 2030; as a result, potential foreign investors would want to know more about the Saudi CG practice in relation to board governance and quality of financial reports of the listed firms on the SSE. Findings from this study contribute to the literature on the application of CG in Saudi Arabia by encouraging policy makers and regulators to improve the CG code and ensure compliance by the listed firms. Key words: Corporate governance (CG), quality of financial reporting (QFR), board independence (BI), board size (BSZE), audit committee independence (ACI), audit committee size (ACSZE), ownership structure (OSTR), Saudi stock exchange (SSE)