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Corporate Governance, Risk Management, and Corporate Failure: Evidence from Financial Services Institutions Listed on the Lusaka Securities Exchange

Author

Listed:
  • Vincent Bwato

    (Institute of Distance Education, University of Zambia)

  • Dr. Norman Kamanga

    (University of Zambia)

  • Dr. Romeo Yohane

    (University of Zambia)

Abstract

This study examines the interaction between corporate governance (CG), enterprise risk management (ERM), financial performance, firm value, and regulatory oversight in influencing corporate stability and failure among financial service institutions listed on the Lusaka Securities Exchange (LuSE). Data were drawn from audited financial statements, corporate governance disclosures, regulatory reports, and interviews conducted across six financial institutions: Zanaco Bank Plc, Absa Bank Plc, Standard Chartered Bank Plc, Investrust Bank Plc, Madison Financial Services Plc, and Zambia Reinsurance Plc. The findings indicate that robust governance structures, integrated ERM frameworks, and strong financial performance are positively associated with firm value and institutional resilience. Conversely, weak governance practices, ineffective risk management, and regulatory non-compliance significantly increase the likelihood of corporate failure, as evidenced by the collapse of Investrust Bank Plc. The study highlights the critical role of regulatory oversight, effective board composition, and proactive risk management in enhancing financial stability in emerging markets.

Suggested Citation

  • Vincent Bwato & Dr. Norman Kamanga & Dr. Romeo Yohane, 2026. "Corporate Governance, Risk Management, and Corporate Failure: Evidence from Financial Services Institutions Listed on the Lusaka Securities Exchange," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 7(1).
    • Handle: RePEc:cwk:ajocsk:2026-09
    DOI: 10.59413/ajocs/v7.i1.9
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    References listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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