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| Empirical Study of Corporate Risk Management on Financial Performance: Nigeria Banks' Perspective |
Ugwu Ikechukwu Virginus Ph.D and Nwakoby, Nkiru Peace. Ph.D
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Abstract:
This study was carried out to determine the Impact of Corporate Risk Management on Financial Performance of banks in Nigeria. To achieve this, the study utilized a pooled research design which is a combination of both cross-sectional and time-series design properties. Population comprised all the listed quoted commercial banks in Nigeria from (2010-2019), and a purposive sampling techniques was applied to select 15 banks based on availability of annual report required for the study. Statistical methods applied Pearson Correlation and Regression analysis on the secondary data collected. The findings are that: Risk diversification has a significant positive impact on ROA; Risk Hedging has a significant positive impact on ROA; Risk transfer has a significant positive impact on ROA; while the three study models shows the Adjusted R-square to have 43%, 42%, 76% respectively for (H1 to H3), and Probability figures of (0.00001, 0.00000, 0.00004 as well indicating that the models were significantly positive on financial performance of listed banks in Nigeria. This study concludes that risk management techniques of risk diversification, risk hedging, and risk transfer in fraud risk management is significantly positive on ROA of listed banks in Nigeria. The study recommends that banks' managers in their risk management decisions should ensure proper risk diversification; risk hedging and risk transfer, as these increase financial performance.
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