CORPORATE GOVERNANCE TRAITS AND CORPORATE RISK REPORTING OF LISTED NIGERIAN FINANCIAL SERVICES FIRMS

Abstract

The study used an ex-post facto research design to determine the effect of corporate governance traits on the corporate risk reporting of Nigerian publicly traded financial services firms. The population of research was comprised of all fifty-two (52) publicly traded financial services companies in Nigeria as at October 2021. To sample thirty-nine (39) publicly traded financial services companies, a judgmental sampling approach was used. Secondary data was taken from annual reports and financial statements of selected Nigerian publicly traded financial services companies for five (5) fiscal years covering 2015–2019 and analyzed using multiple regression analysis. The findings demonstrate a favorable association between the size of the board of directors and corporate risk reporting by Nigerian financial businesses. While independent directors and board gender have no effect on the corporate risk reporting of Nigerian financial services companies. Board activity and profitability have an inverse relationship with corporate risk reporting of Nigerian financial firms. Finally, the research establishes a positive correlation between business size and financial services companies' corporate risk reporting in Nigeria. It is recommended that the regulatory bodies formulate laws relating to risk governance that will enhance corporate risk reporting in Nigeria. Also, the number of independent and female directors should be increased so as to have more influence on decisions that can increase risk reporting transparency.