WORLD JOURNAL OF FINANCE AND INVESTMENT RESEARCH (WJFIR )

E-ISSN 2550-7125
P-ISSN 2682-5902
VOL. 8 NO. 4 2024
DOI: 10.56201/wjfir.v8.no4.2024.pg105.116


Effect of Risk Management Committee Gender Diversity on Earning Capacity in Nigeria Money Deposit Banks

IGBRU Oghenekaro (PhD) & EKOKOTU Rita Nkeiru


Abstract


The aim of the study was to determine the effect of risk management committee gender diversity on earning capacity in Nigeria money deposit banks. The study made use of ex-post facto research design for the collection of secondary data. The population for the study consisted of listed money deposit banks in Nigerian Exchange Group (NGX) as at 31st December, 2021. The sampled under study must fulfill the responsibility of disclosing their financial statements spring ten consecutive years for the period 2012- 2021. Purposive sampling technique was used to select six (6) money deposit banks. Panel regression technique was adopted in the analysis of data. The regression results revealed that risk management committee size has a negative and statistical significant effect on earning capacity in Nigeria money deposit banks at 5% level, risk management committee gender diversity has positive and statistical significant effect on earning capacity in Nigeria money deposit banks at 5% level and risk management committee meetings has negative and no significant effect on earning capacity in Nigeria money deposit banks. It was recommended that banks should be encouraged to emphasize less on gender balancing issues but appoint female to risk management committee based on skills and experiences possessed, since the increased membership of female in risk management committee of banks has brought woes to the industry.


keywords:

Earning Capacity, Risk Management Committee, Risk Management Committee


References:


Abdullah, A & Ismail, K. N. (2015). Hedging activities information and risk management
committee effectiveness: Malaysian evidence. Australian Journal of Basic and Applied
Sciences, 9(37), 211 – 219.
Abdullah, H. S. B., Janor, H., Hamid, M. A., & Yatim, P. (2017). The effect of enterprise risk
management on firm value: Evidence from Malaysian technology. Jurnal Pengurusan,
49(2017), 3-11.
Abubakar, A. H., Ado, A. B., Mohamed, M. I., & Mustapha, U. A. (2018). The effect of risk
management committee attributes and board financial knowledge on the financial
performance of listed banks in Nigeria. American International Journal of Business
Management, 1(2), 07-13.
Aebi, V., Sabato, G., & Schmid, M. (2012). Risk management, corporate governance, and bank
performance in the financial crisis. Journal of Banking & Finance, 36(12), 3213-3226.
Agubata, N. S., Igbru,O. & Udezo, N. O. (2021). Effect of corporate governance on financial risk
disclosure of banks in Nigeria. International Journal of Innovative Social Sciences &
Humanities Research 9(4):136-145.
Ahmed, H. A., Abdullahi, B. A., Mohamed, I. M., & Umar, A. M. (2018). The effect of risk
management committee attributes and board financial knowledge on the financial
performance of listed banks in Nigeria. American International Journal of Business
Management, 1(5), 7 – 13.
Alawattegama, K. K. (2018). The effect of enterprise risk management (ERM) on firm
performance: Evidence from the diversified industry of Sri Lanka. Journal of Management
Research, 10(1), 75 – 93.
Andersson, P., & Wallgren, F. M. (2018). Board gender diversity and firm financial
performance. Unpublished Master thesis submitted to the Department of Business
Administration, JÖNKÖPING University, Jönköping International Business School,
Sweden.
Anton, S. G. (2018). The impact of enterprise risk management on firm value: Empirical
evidence from Romanian non-financial firms. Inzinerine Ekonomika-Engineering
Economics, 29(2), 151–157.
Araoye, F. E., & Olatunji, T. E. (2019). Board meetings and financial performance of insurance
companies in Nigeria. European Journal of Accounting, Auditing and Finance Research,
7(9), 1-16.
Bahamid, R. A., & Doh, S. I. (2017). A review of risk management process in construction
projects of developing countries. IOP Conf. Series. Materials Science and Engineering,
271: 1-8.
Choi, I. (2013). When do companies need a board-level risk management committee? Private
Sector Opinion; no 31. International Finance Corporation, Washington, DC @ World
Bank. http://hdl.handle.net/10986/17018.
Chou, T. K., & Buchdadi, A. D. (2017). Independent board, audit committee, risk committee, the
meeting attendance level and its impact on the performance: A study of listed banks in
Indonesia. International Journal of Business Administration, 8(3), 24-36.
Das, P. K. (2017). Impact of return on capital employed on company performance: An
introspection in India. Saudi Journal of Business and Management Studies, 2(9), 848- 853.
Elamer, A. A., & Benyazid, I. (2018). The impact of risk committee on financial performance of
UK financial institutions. International Journal of Accounting and Finance, Forthcoming,
1–30.
Eluyela, D. F., Akintimehin, O. O., Okere, W., Ozordi, E., Osuma, G. O., Ilogho, S. O., &
Oladipo, O. A. (2018). Board meeting frequency and firm performance: examining the
nexus in Nigeria deposit money banks. Elsevier Heliyon 4(2018), 1-14.
Huse, M., & Solberg, A. G. (2006).gender related boardroom dynamics: How female make and
can make contributions on corporate boards. Female in Management Review, 21(2), 113-
Ibrahim, M. F., Okika, N. P., Yunusa, I., & Janada, A. (2020). Risk management committee size,
independence, expertise and financial performance of listed insurance firms in Nigeria.
International Journal of Research and Innovation in Social Science, 4(5), 313 – 320.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs
and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Kibiya, M. U., Che-Ahmad, A., & Amran, N. A. (2016). Audit committee independence,
financial expertise, share ownership and financial reporting quality: Further evidence from
Nigeria. International Journal of Economics and Financial Issues, 6(7S), 125-131.
Mashonganyika, T. B. (2015). The relationship between corporate governance and firm
performance in South Africa. An unpublished Master thesis submitted to the University of
Murtala, S., Ibrahim, M., Lawal, S. & Abdullahi, B. B. (2018). Capital structure and return on
capital employed of construction companies in Nigeria. African Journal of Accounting,
Auditing and Finance, 6(1), 1–20.
Odubuasi, A. C., Ighosewe, F. E., & Ofor, N.T. (2022). Enterprise risk management and banks’
financial performance: evidence from West African Countries. International
Journal of Research and Innovation in Social Science, VI(1), 268-272.
Odubuasi, A. C., Obi, A. V., & Osuagwu, B. O, (2021). Effect of risk management committee
and enterprise risk management on performance of banks in Nigeria. JETMASE, 3(1), 222-
Odubuasi, A. C, Ofor, N. T., & Ilechukwu, F. U. (2022). Enterprise risk management, risk
committee, and earnings capacity of African banks: A comparative approach. Modern
Economy, 13: 51-68.
Odubuasi, A. C., Ofor, N. T., & Okoye, P. V. (2020). Risk management committee attributes and
financial performance: empirical evidence from Nigeria banks. Journal of Accounting,
Business and Social Sciences, 3(3), 106-115.
Oghenekaro, I., Ikilidih, N. J., & Agari, E. P. (2023). Corporate risk management disclosures and
financial performance of listed deposit money banks in Nigeria. IIARD International
Journal of Banking and Finance Research, 9(4), 53-77
Omondi, M. M., & Muturi, W. (2013). Factors affecting the financial performance of listed
companies at the Nairobi securities exchange in Kenya. Research Journal of Finance and
Accounting, 4(15), 99 – 105.
Onyali, C. I., & Okerekeoti, C. U. (2018) Board heterogeneity and corporate performance of
firms in Nigeria. International Journal of Academic Research in Accounting, Finance and
Management Sciences 8(3), 103-117.
Oyedokun, G. O. (2019). Board characteristics and financial performance of commercial banks
in Nigeria. Accounting and Taxation Review, 3(2), 31-48.
Pearce, J. A., & Zahra, S. A. (1992). Board composition from a strategic contingency
perspective. Journal of Management Studies, 29(4), 411-438.
Ramlee, R., & Ahmad, N. (2015). Panel data analysis on the effect of establishing the enterprise
risk management on firms’ performances. Proceedings of 4th European Business Research
Conference 9-10 April, Imperial College, London, UK.
Sanda, A. U., Garba, T., & Mikailu, A. S. (2011). Board independence and firm financial
performance: Evidence from Nigeria. AERC Research Paper 213, African Economic
Research Consortium, Nairobi.
Yahaya, O. A., & Ogwiji, J. (2021). Risk committee traits and profitability of Nigerian banking
sector.
Accounting,
Finance
and
Management:
text
and
Applications,
1-14.
https://www.researchgate.net/publication/351915803.
Zemzem, A., & Kacem, O. (2014). Risk management, board characteristics and performance in
the Tunisian lending institutions. International Journal of Finance & Banking Studies,
3(1), 186-200.


DOWNLOAD PDF

Back