FINANCIAL RISK AND PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA: THE MODERATING EFFECT OF RISK MANAGEMENT COMMITTEE

Authors

  • Maryam Isyaku Mohammed, Ph.D Department of Accounting, Modibbo Adama University, Yola
  • Susan Peter Teru Department of Accounting, Taraba State University, Jalingo
  • Aliyu Shehu Usman Department of Accounting, Taraba State University, Jalingo

Keywords:

DBMs Financial risk, performance, risk management committee

Abstract

The study evaluates the moderating effect of risk management committee on the relationship between financial risk and performance. Financial risk is proxied using default risk, liquidity risk, capital risk and market risk while net interest income is the proxy for performance. The population consist of all 15 listed deposit money banks in Nigeria stock exchange as at 31st December, 2020. A sample of thirteen banks was used and ex post facto research design was adopted. The date was analyze using STATA and the result reveal that risk management committee significantly moderate the relationship between credit risks, liquidity risk and performance while other hypothesis variables indicated insignificant effect of the moderator. The study recommends that Managers of deposit money banks should ensure that loans are backed by adequate collateral facilities to reduce the possibility of default. They should maintain adequate cash and cash equivalents in order to settle their short-term obligations as they fall due and also to take advantage of quick and profitable investments.

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Published

2022-01-15

How to Cite

Mohammed, M. I., Teru, S. P., & Aliyu, S. U. (2022). FINANCIAL RISK AND PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA: THE MODERATING EFFECT OF RISK MANAGEMENT COMMITTEE. TSU-International Journal of Accounting and Finance, 1(2), 142–159. Retrieved from https://tsuijafc.k-publisher.com/index.php/tsuijaf/article/view/32

Issue

Vol. 1 No. 2 (2022): January, 2022

Section

Articles

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