CORPORATE GOVERNANCE MECHANISMS AND RISK MANAGEMENT OF LISTED DEPOSITS MONEY BANKS IN NIGERIA

Abstract

This research examines the impact of corporate governance mechanisms on risk management of listed deposit money banks in Nigeria for the period 2011-2021.  The research adopted an ex-post facto research design to entail the use of annual reports and accounts of the quoted deposits money Banks under research. Panel data analysis was employed to adopt the Random-effect GLS regression technique to analyze data which were in time series simultaneously, the hypotheses were analyzed and tested using Stata Version 12. The result reveals that board independence has a positive impact on credit risk and liquidity risk as well as a negative significance to the capital risk in Nigeria. Regarding gender diversity, the research found that there is a positive relationship between GDP with capital risk and credit risk, and also positively significant to liquidity risk. Further findings equally suggest that there is a positive and significant impact on GDP with capital risk, credit risk, and also positively significant liquidity risk. In line with the findings, it is concluded that companies must also be individually involved in risk management responsibilities otherwise; banks may have a low reputation, low profits, and low resources. Further study was recommended on the board size so that the banks can maintain a relatively small board size dominated by outside directors within the provisions of the code of corporate governance for banks.