RISK MANAGEMENT INFORMATION DISCLOSURE AND FIRM FINANCIAL PERFORMANCE

ABSTRACT

This study investigated the effect of Risk Management Information Disclosure on Firm Financial Performance using panel data of forty-two listed financial institutions in the Nigeria Exchange Group for the period 2018 – 2022. The variables considered were firm financial performance proxied by return on assets, credit risk management information disclosure, operational risk management information disclosure, market risk management information disclosure, and foreign currency risk management information disclosure. The study carried out a histogram normality test, Breusch-Pagan-Godfrey test of heteroskedasticity, Ramsey RESET model specification test, Serial correlation test, correlation analysis and regression analysis. The Fstatistics indicated that all the explanatory variables taken together are statistically significant. The regression result revealed that credit risk management information disclosure has a negative and insignificant influence on firm performance. Operational risk management information disclosure was seen to be positively related to firm performance. Also, the result revealed a negative and insignificant relationship between foreign currency risk management information disclosure and firm performance at 5% significance level. Market risk management information disclosure maintains a positive and insignificant relationship with firm performance. The study recommended that firm managers should give important attention to operational risk and market risk as they contribute positively to the improvement in the firm financial performance.