ENTERPRISE RISK MANAGEMENT AND FORM PERFORMANCE /
Omoniyi, Jegede Peter
ENTERPRISE RISK MANAGEMENT AND FORM PERFORMANCE / JEGEDE PETER OMONIYI; SUPERVISOR: JEGEDE PETER OMONIYI - 55 sheets; 31 cm. Includes CD
Thesis (MSc) - Cyprus International University. Institute of Graduate Studies and Research Accounting and Finance Department
Includes bibliography (sheets 50-55)
ABSTRACT
Management of Risk has been an imperative obligation for controlling uncertainties in the company so as to achieve company’s goals and objectives. Thus, the study investigates the link between enterprise risk management and firm performance by emphasizing on the role of risk managers of commercial banks in Nigeria from 2011 to 2020. Secondary data gathered from the publications of the banks were computed using Generalized Method of Moments (GMM). Panel unit root test revealed the stationary level of the data while the cointegration test confirmed long-run influence of the variables. The GMM findings revealed that performance of the commercial banks in Nigeria was significantly determined by enterprise risk management proxied by risk management committee, banks’ board size and loans to deposits ratio. The GMM findings also showed that negative but significant nexus exists between risk management committee and commercial banks performance in Nigeria; this might be as a result of inconsistencies in the number of risk management committees in the commercial banks in Nigeria. The GMM also revealed that size of the board of directors and loans to deposits ratio had significant positive influence on performance of commercial banks in Nigeria. It was concluded that viable enterprise risk management is necessary for the performance of the commercial banks in Nigeria. Therefore, the board of directors should be inculcated into the risk management committee of the banks. In doing so, the level of efficiency and the effectiveness of the board of directors will be translated into effective risk management in the variously commercial banks so as to boost the viability of the commercial banks in Nigeria.
Keywords: Risk management, Commercial banks, Generalized Method of Moments.
Risk management--Dissertations, Academic
Banks and banking--Dissertations, Academic
ENTERPRISE RISK MANAGEMENT AND FORM PERFORMANCE / JEGEDE PETER OMONIYI; SUPERVISOR: JEGEDE PETER OMONIYI - 55 sheets; 31 cm. Includes CD
Thesis (MSc) - Cyprus International University. Institute of Graduate Studies and Research Accounting and Finance Department
Includes bibliography (sheets 50-55)
ABSTRACT
Management of Risk has been an imperative obligation for controlling uncertainties in the company so as to achieve company’s goals and objectives. Thus, the study investigates the link between enterprise risk management and firm performance by emphasizing on the role of risk managers of commercial banks in Nigeria from 2011 to 2020. Secondary data gathered from the publications of the banks were computed using Generalized Method of Moments (GMM). Panel unit root test revealed the stationary level of the data while the cointegration test confirmed long-run influence of the variables. The GMM findings revealed that performance of the commercial banks in Nigeria was significantly determined by enterprise risk management proxied by risk management committee, banks’ board size and loans to deposits ratio. The GMM findings also showed that negative but significant nexus exists between risk management committee and commercial banks performance in Nigeria; this might be as a result of inconsistencies in the number of risk management committees in the commercial banks in Nigeria. The GMM also revealed that size of the board of directors and loans to deposits ratio had significant positive influence on performance of commercial banks in Nigeria. It was concluded that viable enterprise risk management is necessary for the performance of the commercial banks in Nigeria. Therefore, the board of directors should be inculcated into the risk management committee of the banks. In doing so, the level of efficiency and the effectiveness of the board of directors will be translated into effective risk management in the variously commercial banks so as to boost the viability of the commercial banks in Nigeria.
Keywords: Risk management, Commercial banks, Generalized Method of Moments.
Risk management--Dissertations, Academic
Banks and banking--Dissertations, Academic