The Effect of Board and Risk Management Committee Attributes on the Financial Performance of Listed Banks in Nigeria
The issue revolving around corporate governance and financial performance has always been an essential and critical element for banking sector in Nigeria. Good corporate governance practices and establishing a separate risk management committee are regarded as important in reducing risk for investor...
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| Format: | Thesis |
| Language: | eng eng eng |
| Published: |
2018
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| Subjects: | |
| Online Access: | https://etd.uum.edu.my/8243/1/s820883_01.pdf https://etd.uum.edu.my/8243/2/s820883_02.pdf https://etd.uum.edu.my/8243/3/s820883_references.docx |
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| Summary: | The issue revolving around corporate governance and financial performance has always been an essential and critical element for banking sector in Nigeria. Good corporate governance practices and establishing a separate risk management committee are regarded as important in reducing risk for investors, and improving performance. This study investigates the effect of board and risk management committee attributes (board size, board independence, board financial knowledge, risk management committee independence, risk management committee size, and existence of separate risk management committee) on the financial performance of listed banks in Nigeria. Furthermore the research used secondary data obtained from the annual report of fourteen (14) banks listed in the Nigerian stock exchange for the year 2014-2016 with 42 firm-year observations and based on panel data approach. Furthermore, the regression estimates are based on random effect. The result indicates that board size, board independence, and board financial knowledge exhibit a significant negative relationship with ROA. Meanwhile, risk management committee independence has a negative insignificant relationship with ROA. Furthermore, risk management committee size, and existence of separate risk management committee show positive significant relationship with ROA. Besides providing suggestion for future research work, this study provides several recommendation for regulators and the Nigerian banking industry. |
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