Overlap Directors on Risk Committee, Financial Leverage and Value of listed Firms in Nigeria: A Review of Literature.

Abstract

The structure that guides listed corporate entities in Nigeria is the corporate governance code. This code ensures best practices and protects all stakeholder’s interests. The paper reviewed prior literature on the impact of overlapping directors, proxied as directors who serve on both the audit and risk committees, the existence of a separate risk committee, financial leverage on the value of firms in Nigeria. Risk management is the strategy employed by management to mitigate the effect of factors that could hinder the attainment of the firm’s goals and objectives. If not properly managed, it will have a negative impact on the survival of the firm. Thereby, having a great impact on the value of firms. The effect of the covid 19 pandemic has negatively impacted on prospective and existing shareholders of most firms as envisaged in fluctuations in the Nigeria capital market between the year 2019 and 2020. Top management of these entities must decide on the alternative sources available to finance the operations of the firms which will not affect the firm value in the long run. The paper employed the use of a systematic literature review. Finally, the paper explains the findings of contemporary studies in this research area and highlight the need for more studies.