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MODERATING EFFECTS OF BOARD EQUITY OWNERSHIP ON THE RELATIONSHIP BETWEEN ENTERPRISE RISK MANAGEMENT, REGULATORY COMPLIANCE AND FIRM PERFORMANCE: EVIDENCE FROM NIGERIA

International Journal of Economics, Management and Accounting

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Title MODERATING EFFECTS OF BOARD EQUITY OWNERSHIP ON THE RELATIONSHIP BETWEEN ENTERPRISE RISK MANAGEMENT, REGULATORY COMPLIANCE AND FIRM PERFORMANCE: EVIDENCE FROM NIGERIA
 
Creator Ahmed, Idris; Department of Business Administration, Ahmadu Bello University Zaria.
Abdul Manab, Norlida; School of Economics, Finance and Banking, Universiti Utara Malaysia
 
Description Risk management has become central to the financial sector development of any economy. The collapse of world leading financial institutions in 2008/2009 have raised questions about the role of risk management and compliance with regulatory provisions in shielding firms against failure. Also, the post adverse effects of the global economic meltdown have continued undermined the performance of financial institutions, Nigeria inclusive. The aim of this study is to examine the moderating effect of Board Equity Ownership on the relationship between ERM framework implementation, regulatory compliance and the non-financial performance of financial intuitions in Nigeria. The sample of the study consists of 163 financial institutions in Nigeria. We collected data from the chief risk officers and other top level managers of the organizations. The study utilized PLS-SEM path modelling with the help of SmartPLS 2.0 software to test the research framework. The findings revealed that ERM framework implementation and regulatory compliance have significant positive effects on the non-financial performance. Also, the study supported the third hypothesis that BEO strengthens the positive relationship between ERM framework adoption and the firm non-financial performance. In the case of compliance, the interaction effect (BEO*COP) did not influence the firm non-financial performance. The study recommended the need for regulatory agencies to encourage board equity ownership but with a caveat to prevent interest entrenchment that may lead to abuse.
 
Publisher Kulliyyah of Economics and Management Sciences
 
Contributor —
 
Date 2016-11-29
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/434
 
Source International Journal of Economics, Management and Accounting; Vol 24, No 2 (2016); 163-187
 
Language eng
 
Relation http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/434/223