TY - GEN
T1 - Risk governance and firm performance in Nigeria's financial sector
AU - Erin, Olayinka
AU - Uwuigbe, Uwalomwa
AU - Eriabie, Sylvester
AU - Uwuigbe, Olubukola
N1 - Publisher Copyright:
© 2019 International Business Information Management Association (IBIMA).
PY - 2019
Y1 - 2019
N2 - This study examines the impact of risk governance on firm performance of 50 listed firms in the Nigerian financial sector for the period of five years (2013-2017). This study employed the use of panel data to examine the impact of risk governance variables (ERM_index, CRO_presence, BRC_size, BRC_activism, and BRC_independence) on firm performance (ROA). The study provides empirical evidence which shows that most of the risk governance variables (ERM_index, CRO_presence, BRC_activism, and BRC_independence) have a positive and significant impact on firm performance except BRC_size which shows a negative relationship with firm performance. The empirical evidence observed in this study reveals that the institutionalization of risk culture, strong risk oversight functions and increase in risk accountability by the board have greater tendency to enhance the performance of a firm. This study recommends that corporate organisations should strengthen their risk committee composition with people that are knowledgeable in risk and finance-related issues. This will further strengthen the risk governance process and enhance firm's performance.
AB - This study examines the impact of risk governance on firm performance of 50 listed firms in the Nigerian financial sector for the period of five years (2013-2017). This study employed the use of panel data to examine the impact of risk governance variables (ERM_index, CRO_presence, BRC_size, BRC_activism, and BRC_independence) on firm performance (ROA). The study provides empirical evidence which shows that most of the risk governance variables (ERM_index, CRO_presence, BRC_activism, and BRC_independence) have a positive and significant impact on firm performance except BRC_size which shows a negative relationship with firm performance. The empirical evidence observed in this study reveals that the institutionalization of risk culture, strong risk oversight functions and increase in risk accountability by the board have greater tendency to enhance the performance of a firm. This study recommends that corporate organisations should strengthen their risk committee composition with people that are knowledgeable in risk and finance-related issues. This will further strengthen the risk governance process and enhance firm's performance.
KW - Board Risk Committee
KW - Firm Performance
KW - Nigerian Financial Sector
KW - Risk Governance
UR - http://www.scopus.com/inward/record.url?scp=85074093269&partnerID=8YFLogxK
M3 - Conference contribution
AN - SCOPUS:85074093269
T3 - Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020
SP - 8111
EP - 8124
BT - Proceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019
A2 - Soliman, Khalid S.
PB - International Business Information Management Association, IBIMA
T2 - 33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019
Y2 - 10 April 2019 through 11 April 2019
ER -