MODERATING EFFECT OF RISK GOVERNANCE COMMITTEE BETWEEN BOARD INDEPENDENCE AND FINANCIAL PERFORMANCE AMONG NIGERIAN LISTED FINANCIAL INSTITUTIONS

The risk governance committee establishes risk strategy, reviews risk reports and provides enterprise risk management advice to board members. Though research on board independence is has established the influence on firms’ financial performance, there are concerns as to its extent. This study exam...

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Main Authors: Ibrahim D. ABDULLAHI, Bala Ahmed AHMED
Format: Article
Language:English
Published: Kwara State University, Malete Nigeria 2023-11-01
Series:Malete Journal of Accounting and Finance
Subjects:
Online Access:https://majaf.com.ng/index.php/majaf/article/view/70
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author Ibrahim D. ABDULLAHI
Bala Ahmed AHMED
author_facet Ibrahim D. ABDULLAHI
Bala Ahmed AHMED
author_sort Ibrahim D. ABDULLAHI
collection DOAJ
description The risk governance committee establishes risk strategy, reviews risk reports and provides enterprise risk management advice to board members. Though research on board independence is has established the influence on firms’ financial performance, there are concerns as to its extent. This study examines the moderating role of risk governance committee on the relationship between board independence and financial performance of listed financial institutions in Nigeria for the period of 2016-2020. The population of the study comprised of 57 financial institutions listed on the Nigerian Stock Exchange as at December 2020 from which a sample of 47 firms was used. Multiple regression technique was employed for data analysis. The results show that board independence and risk governance committee have insignificant relationship with financial performance but significantly moderates the relationship between board independence and financial performance of listed financial institutions in Nigeria. The study recommends that financial institutions in Nigeria should strengthen risk governance committee and encourage more number of knowledgeable outside/independent directors. This is because the presence of a strong risk governance committee could improve the efficiency of the firm’s financial performance
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institution Kabale University
issn 2735-9603
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publishDate 2023-11-01
publisher Kwara State University, Malete Nigeria
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spelling doaj-art-7c298b10aeaa48ee8913314d87e0f03a2025-02-10T23:06:36ZengKwara State University, Malete NigeriaMalete Journal of Accounting and Finance2735-96032023-11-0131MODERATING EFFECT OF RISK GOVERNANCE COMMITTEE BETWEEN BOARD INDEPENDENCE AND FINANCIAL PERFORMANCE AMONG NIGERIAN LISTED FINANCIAL INSTITUTIONSIbrahim D. ABDULLAHI0Bala Ahmed AHMED1Federal Polytechnic Nasarawa, Nasarawa StateFederal Polytechnic Nasarawa Nasarawa State The risk governance committee establishes risk strategy, reviews risk reports and provides enterprise risk management advice to board members. Though research on board independence is has established the influence on firms’ financial performance, there are concerns as to its extent. This study examines the moderating role of risk governance committee on the relationship between board independence and financial performance of listed financial institutions in Nigeria for the period of 2016-2020. The population of the study comprised of 57 financial institutions listed on the Nigerian Stock Exchange as at December 2020 from which a sample of 47 firms was used. Multiple regression technique was employed for data analysis. The results show that board independence and risk governance committee have insignificant relationship with financial performance but significantly moderates the relationship between board independence and financial performance of listed financial institutions in Nigeria. The study recommends that financial institutions in Nigeria should strengthen risk governance committee and encourage more number of knowledgeable outside/independent directors. This is because the presence of a strong risk governance committee could improve the efficiency of the firm’s financial performance https://majaf.com.ng/index.php/majaf/article/view/70Board independenceagency theoryfinancial institutions
spellingShingle Ibrahim D. ABDULLAHI
Bala Ahmed AHMED
MODERATING EFFECT OF RISK GOVERNANCE COMMITTEE BETWEEN BOARD INDEPENDENCE AND FINANCIAL PERFORMANCE AMONG NIGERIAN LISTED FINANCIAL INSTITUTIONS
Malete Journal of Accounting and Finance
Board independence
agency theory
financial institutions
title MODERATING EFFECT OF RISK GOVERNANCE COMMITTEE BETWEEN BOARD INDEPENDENCE AND FINANCIAL PERFORMANCE AMONG NIGERIAN LISTED FINANCIAL INSTITUTIONS
title_full MODERATING EFFECT OF RISK GOVERNANCE COMMITTEE BETWEEN BOARD INDEPENDENCE AND FINANCIAL PERFORMANCE AMONG NIGERIAN LISTED FINANCIAL INSTITUTIONS
title_fullStr MODERATING EFFECT OF RISK GOVERNANCE COMMITTEE BETWEEN BOARD INDEPENDENCE AND FINANCIAL PERFORMANCE AMONG NIGERIAN LISTED FINANCIAL INSTITUTIONS
title_full_unstemmed MODERATING EFFECT OF RISK GOVERNANCE COMMITTEE BETWEEN BOARD INDEPENDENCE AND FINANCIAL PERFORMANCE AMONG NIGERIAN LISTED FINANCIAL INSTITUTIONS
title_short MODERATING EFFECT OF RISK GOVERNANCE COMMITTEE BETWEEN BOARD INDEPENDENCE AND FINANCIAL PERFORMANCE AMONG NIGERIAN LISTED FINANCIAL INSTITUTIONS
title_sort moderating effect of risk governance committee between board independence and financial performance among nigerian listed financial institutions
topic Board independence
agency theory
financial institutions
url https://majaf.com.ng/index.php/majaf/article/view/70
work_keys_str_mv AT ibrahimdabdullahi moderatingeffectofriskgovernancecommitteebetweenboardindependenceandfinancialperformanceamongnigerianlistedfinancialinstitutions
AT balaahmedahmed moderatingeffectofriskgovernancecommitteebetweenboardindependenceandfinancialperformanceamongnigerianlistedfinancialinstitutions