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Corporate governance reform and risk management disclosures: evidence from Nigeria

Author

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  • Mohammed Mahmud Kakanda,
  • Basariah Salim,
  • Sitraselvi Chandren

Abstract

The purpose of this study is to examine the disclosure intensity of risk management practices of listed financial service firms in Nigeria after the Corporate Governance (CG) reform in the year 2011. In the quest to achieve the objective of this study, content analysis of the annual reports of 45 sampled firms spanning from the year 2012 to 2015 was carried out. The study finds that there is a significant disclosure of risk management practices of the sampled firms, especially in relation to their risk management committee structure and its responsibility, risk management policies, audit committee availability and function, and capital/market risks. The sample firms remain reluctant in the disclosure of their environmental risk and operational risks. Moreover, there is no significant difference between banks and nonbanks in the disclosure of their risk management practices, signifying a strong adherence to the 2011 reformed CG code in Nigeria.

Suggested Citation

  • Mohammed Mahmud Kakanda, & Basariah Salim, & Sitraselvi Chandren, 2017. "Corporate governance reform and risk management disclosures: evidence from Nigeria," Business and Economic Horizons (BEH), Prague Development Center, vol. 13(3), pages 357-367, July.
    • Handle: RePEc:pdc:jrnbeh:v:13:y:2017:i:3:p:357-367
    DOI: 10.15208/beh.2017.26
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    References listed on IDEAS

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    Cited by:

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    2. Francesco De Luca & Ho-Tan-Phat Phan, 2019. "Informativeness Assessment of Risk and Risk-Management Disclosure in Corporate Reporting: An Empirical Analysis of Italian Large Listed Firms," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2019(2), pages 9-41.
    3. Thilini Cooray & A. D. Nuwan Gunarathne & Samanthi Senaratne, 2020. "Does Corporate Governance Affect the Quality of Integrated Reporting?," Sustainability, MDPI, vol. 12(10), pages 1-30, May.

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    More about this item

    Keywords

    Corporate governance reform; risk management disclosure; risk management practices; financial service firms; Nigerian corporate governance code.;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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