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| A Critical Study Of Corporate Risk Management Committee Impact On Firm Performance |
Ugwu, Ikechukwu Virginus Ph.D ; Ekwochi, Eucharia Adaeze Ph.D ; Ogbu, Cyril Gabriel, Ph.D
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Abstract:
This study determined the effect of corporate risk management committee on performance of firms in Nigeria. Other specific objectives are to determine how: corporate risk committee size CRCS; corporate risk committee diligence CRCD; corporate risk committee expertise CRCE; corporate risk committee composition CRCC impacts on the financial performance ROE of firms in Nigeria. Population of the study comprised all the 18 listed banks in Nigeria as found in Nigeria Stock Exchange, 2020. But the study sample size comprised five banks that have consistently been in banking operations and have the required size of shareholders wealth as reported by NDIC annual report from (2009-2019) and have mandatorily been reporting risk management issues to date. Data collection was based on content analysis using systematic classification, coding, identifying items and subject interpretation of text data. The analytical techniques applied are: Descriptive Statistics; Pearson Correlation; Haussmann Test (Random and Fixed Effect) Regression Model; Variance Inflation Factor (VIF) to check Multicollinearity of the independent variables, Heteroscedasticity Test and Ramsey RESET Test. The results show that corporate risk management committee impacts ROE of the sampled firms especially banks. Out of the four explanatory variables applied in the study; CRCD and CRCC are positively significant; while CRCE is positively insignificant and CRCS is insignificant on ROE. The study recommends that there is a need for firms, especially banks to establishing risk management committee, considering CRCD and CRCC as they impact on financial performance. This study contributes to knowledge with the enormous rich literature for academia and also with the new model applied in the study.
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