Financial Risk Management And Corporate Performance Of Deposit Money Banks In Nigeria
Journal Title: Archives of Business Research - Year 2017, Vol 5, Issue 12
Abstract
Effective risk management system will minimize the complexities involved in planning, executing and controlling overall running of a business which is critical to success and this maximizes profitability in a business. This study examined the effect of financial risk management on the corporate performance of deposit money banks in Nigeria. In order to achieve the objective of the study, data were extracted from annual reports and accounts of fifteen (15) deposit money banks quoted on the Nigerian stock exchange, the period covered in the study is 2012-2016. Data for financial risk management proxied by bank size was extracted and corporate performance was represented by return on equity. In testing the research hypothesis, the study adopted both descriptive statistics and simple regression techniques analyzed with the aid of Statistical Package for Social Sciences (SPSS) version 20. The findings revealed that bank size have insignificant effect on the return on equity of deposit money banks in Nigeria during the year under review. Consequent upon this study, it was recommended that the CBN and other regulators should endeavor to enforce risk identification, assessment, measurement and control mechanism, in line with best global practices in other to avoid financial crisis and also improve on banks’ performances.
Authors and Affiliations
Ezelibe Chizoba Paulinus, Aniefor Sunday Jones
Keywords
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- EP ID EP314281
- DOI 10.14738/abr.512.3909.
- Views 92
- Downloads 0
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Financial Risk Management And Corporate Performance Of Deposit Money Banks In Nigeria
Effective risk management system will minimize the complexities involved in planning, executing and controlling overall running of a business which is critical to success and this maximizes profitability in a business. T...