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Enterprise Risk Management and Financial Performance of Nigerian Listed Deposit Money Banks
Abstract
This study examines the effect of enterprise risk management attributes — Value-at-Risk, leverage ratio, board size, firm size, and risk management committee — on the financial performance of quoted Nigerian deposit money banks, using panel data from 13 banks (2014–2025, 156 observations) and four performance measures: ROA, ROE, Tobin's Q, and NIM. Employing Pooled OLS, Fixed Effects, and Random Effects regression selected via the Lagrange Multiplier and Hausman tests, results show leverage ratio and firm size significantly predict performance, while VaR, board size, and RMC show no significant effect at 5%. Leverage negatively affects profitability and valuation; firm size positively predicts returns but negatively predicts valuation. Capital structure and scale matter more than risk-governance presence alone.
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