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Moderating Effect of Board Gender Diversity on Operational and Liquidity Risks Information Disclosure and Market Value of Listed Companies in Financial Sector of Nigeria

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Abstract

This study investigates the moderating effect of board gender diversity on the relationship between operational and liquidity risk information disclosure and market value of listed companies in Nigeria's financial sector. Using a Generalized Method of Moments (GMM) approach, data was collected from 432 company-year observations, covering operational risk disclosure, liquidity risk disclosure, and board gender diversity attributes. The findings indicate that board gender diversity significantly moderates the relationship between operational risk information disclosure and market value, enhancing firm performance. However, board gender diversity negatively moderates the relationship between liquidity risk disclosure and market value, suggesting complexities in how diverse boards manage liquidity risk communications. The study concludes that board gender diversity plays a significant role in influencing how risk disclosures affect market value. Specifically, while board gender diversity positively moderates the relationship between operational risk disclosure and market value, it has a negative moderating effect on the relationship between liquidity risk disclosure and market value. Therefore, the study recommends that listed companies in the financial sector should develop and adopt robust risk disclosure frameworks that guide the presentation of operational and liquidity risks. Such frameworks should consider the diversity of the board and how it may influence stakeholder perceptions, ensuring that information is communicated transparently and effectively.

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  • Musa Mohammed, NABURGI & Salawu Abdulrahim, APOTI, 2024. "Moderating Effect of Board Gender Diversity on Operational and Liquidity Risks Information Disclosure and Market Value of Listed Companies in Financial Sector of Nigeria," Multidisciplinary Journal of Management Sciences, Association of Forensic Accounting Researchers (AFAR), vol. 7(2), pages 1-24, December.
    • Handle: RePEc:ris:amjoms:0087
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    1. Adams, Renée B. & Ferreira, Daniel, 2009. "Women in the boardroom and their impact on governance and performance," Journal of Financial Economics, Elsevier, vol. 94(2), pages 291-309, November.
    2. Linsley, Philip M. & Shrives, Philip J., 2006. "Risk reporting: A study of risk disclosures in the annual reports of UK companies," The British Accounting Review, Elsevier, vol. 38(4), pages 387-404.
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