EFFECT OF RISK MANAGEMENT COMMITTEE ATTRIBUTES ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study examined the effect of risk management committee attributes on financial performance
of listed deposit money banks in Nigeria. The study used census sampling approach to arrive at
thirteen (13) listed deposit money banks in Nigeria from the population. Secondary data was
collected from the audited annual reports of the thirteen (13) listed deposit money banks in Nigeria
from the period covering 2018 to 2022. The study’s dependent variable which is financial
performance was measured by return on assets (ROA) and the independent variable of risk
management committee attributes was represented by size, independence and meetings, while firm
size was used as a control variable in the study. With the conducting of diagnostic tests the
Ordinary Least Square Robust (OLS) regression technique of data analysis was used to test the
hypotheses formulated in the study. The regression results established that risk management
committee size and risk management committee independence have positive and significant effect
on financial performance of listed deposit money banks within the period of the study. Hence, the
study concluded that risk management committee size and risk management committee
independence impact on financial performance of listed deposit money banks in Nigeria. In line
with this, the study recommended that management of listed deposit money banks in Nigeria
should increase the number of their risk management committee size and the number of
independent directors on the committee as doing so will improve the performance of these banks.