IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 9 NO. 4 2023
DOI: https://doi.org/10.56201/ijbfr.v9.no4.2023.pg125.138

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Risk Management and Value of Listed Commercial Banks in Nigeria

Essien, E. Akpanuko, Etim, O. Etim, & Akporien, O. Fidelis

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Abstract

This study was carried out to examine the relationship between risk management and value of listed commercial banks in Nigeria. The study, anchored on the risk management theory, adopted the ex post facto research design. The population consists of all listed commercial banks in Nigeria. Data for the study were collected from secondary sources through content analysis of corporate financial statements of the sampled commercial banks for the period 2017 to 2022. The data collected were analysed using the descriptive and inferential statistics while the hypotheses formulated for the study were tested using the panel regression analytical method. Findings of the study showed that operational risks and liquidity risks management have a significant positive relationship with market value of listed commercial banks in Nigeria. The study also found that market value has a negative and significant relationship with credit risks. The study therefore concludes that risk management practices influence the market value of listed commercial banks in Nigeria and recommends amongst others that automated credit tracking mechanism should be put in place by the management of commercial banks so as to reduce the possibility of default and outstanding loans beyond the substandard loan level of between 90 to 180 days.

Risk Management, Operational Risk, Credit Risk, Liquidity, Firm Value

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Afriyie, H. O. and Akotey, J. O. (2012). Credit risk management and firm value of selected rural
banks in Ghana. Catholic University College of Ghana. M.Sc. Dissertation.

Ahmed, I.A.N. (2016). Influence of risk management success factors on firm financial
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