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Do board characteristics and risk management disclosure have any effect on firm performance? Empirical evidence from Deposit Money Banks (DMBs) in Nigeria

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  • Mohammed Mahmud Kakanda,
  • Basariah Salim,
  • Sitraselvi Chandren,

Abstract

This study examines the relationship between board characteristics, risk management disclosure and performance of Deposit Money Banks (DMBs) in Nigeria. Data were obtained from the annual accounts and reports of the 15 DMBs listed on the Nigerian Stock Exchange (NSE) covering 2012 to 2016. For the purpose of testing the relationship between the dependent variable (return on asset [ROA]) and the explanatory variables in this study, Random Effect (RE) regression model was employed. The study finds that board size, board composition, and risk management disclosure have a significant positive effect on ROA, whereas, board meeting has a significant negative influence on ROA. Moreover, the study documents that board expertise has a negative, but an insignificant association with ROA. The finding of this study is essential to both corporate authorities and other corporate stakeholders in Nigeria. The study concludes by providing an agenda for future research in a similar domain.

Suggested Citation

  • Mohammed Mahmud Kakanda, & Basariah Salim, & Sitraselvi Chandren,, 2017. "Do board characteristics and risk management disclosure have any effect on firm performance? Empirical evidence from Deposit Money Banks (DMBs) in Nigeria," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(4), pages 506-521, October.
    • Handle: RePEc:pdc:jrnbeh:v:13:y:2017:i:4:p:506-521
    DOI: 10.15208/beh.2017.35
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    More about this item

    Keywords

    Board characteristics; risk management disclosure; firm performance; Deposit Money Banks; Nigerian Code of Corporate Governance;
    All these keywords.

    JEL classification:

    • G - Financial Economics
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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