Deposit money banks are the bedrock of Nigerian economy through provision of financial intermediary services to the various sectors, thereby supporting the economic development and growth of the nation. Globalization and the unpredictable business environment have increased the risks facing banks in Nigeria leading to dwindling financial performance. Evidence from literature showed that not many banks have integrated enterprise risk management into their operations. The study adopted ex-post facto research design. The population of the study was all the 12 deposit money banks in Nigeria for the period 2007 – 2021. Total enumeration sampling techniques was used. Data were sourced from the annual reports of the deposit money banks selected for the study. Data were analyzed using descriptive and inferential statistics. Enterprise risk management has significant effect on Net profit margin, Adj.R2 = 0.1791, F (7, 172) = 142.80, P < 0.05). Enterprise risk management has significant effect on Net Interest Income, Adj.R2 = 0.3702, F (7, 172) = 142.80, < 0.05). The study concluded that enterprise risk management affect the financial performance of deposit money banks in Nigeria. The study recommended that the policy makers should implement robust enterprise risk management frameworks with special focus on combination of leadership control variables with traditional risk management strategies as its effective implementation enhances the overall financial performance of banks.
| Published in | Journal of Finance and Accounting (Volume 11, Issue 3) |
| DOI | 10.11648/j.jfa.20231103.14 |
| Page(s) | 87-94 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Enterprise Risk Management, Net Profit Margin, Net Interest Income, Financial Performance
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APA Style
Chukwu Alexander Okoro, Akintoye Ishola Rufus, Ajibade Ayodeji Temitope. (2023). Empirical Investigation into the Effect of Enterprise Risk Management on Financial Performance of Banks: Evidence from Deposit Money Banks in Nigeria. Journal of Finance and Accounting, 11(3), 87-94. https://doi.org/10.11648/j.jfa.20231103.14
ACS Style
Chukwu Alexander Okoro; Akintoye Ishola Rufus; Ajibade Ayodeji Temitope. Empirical Investigation into the Effect of Enterprise Risk Management on Financial Performance of Banks: Evidence from Deposit Money Banks in Nigeria. J. Finance Account. 2023, 11(3), 87-94. doi: 10.11648/j.jfa.20231103.14
AMA Style
Chukwu Alexander Okoro, Akintoye Ishola Rufus, Ajibade Ayodeji Temitope. Empirical Investigation into the Effect of Enterprise Risk Management on Financial Performance of Banks: Evidence from Deposit Money Banks in Nigeria. J Finance Account. 2023;11(3):87-94. doi: 10.11648/j.jfa.20231103.14
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Download@article{10.11648/j.jfa.20231103.14,
author = {Chukwu Alexander Okoro and Akintoye Ishola Rufus and Ajibade Ayodeji Temitope},
title = {Empirical Investigation into the Effect of Enterprise Risk Management on Financial Performance of Banks: Evidence from Deposit Money Banks in Nigeria},
journal = {Journal of Finance and Accounting},
volume = {11},
number = {3},
pages = {87-94},
doi = {10.11648/j.jfa.20231103.14},
url = {https://doi.org/10.11648/j.jfa.20231103.14},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20231103.14},
abstract = {Deposit money banks are the bedrock of Nigerian economy through provision of financial intermediary services to the various sectors, thereby supporting the economic development and growth of the nation. Globalization and the unpredictable business environment have increased the risks facing banks in Nigeria leading to dwindling financial performance. Evidence from literature showed that not many banks have integrated enterprise risk management into their operations. The study adopted ex-post facto research design. The population of the study was all the 12 deposit money banks in Nigeria for the period 2007 – 2021. Total enumeration sampling techniques was used. Data were sourced from the annual reports of the deposit money banks selected for the study. Data were analyzed using descriptive and inferential statistics. Enterprise risk management has significant effect on Net profit margin, Adj.R2 = 0.1791, F (7, 172) = 142.80, P 2 = 0.3702, F (7, 172) = 142.80, < 0.05). The study concluded that enterprise risk management affect the financial performance of deposit money banks in Nigeria. The study recommended that the policy makers should implement robust enterprise risk management frameworks with special focus on combination of leadership control variables with traditional risk management strategies as its effective implementation enhances the overall financial performance of banks.},
year = {2023}
}
TY - JOUR T1 - Empirical Investigation into the Effect of Enterprise Risk Management on Financial Performance of Banks: Evidence from Deposit Money Banks in Nigeria AU - Chukwu Alexander Okoro AU - Akintoye Ishola Rufus AU - Ajibade Ayodeji Temitope Y1 - 2023/06/09 PY - 2023 N1 - https://doi.org/10.11648/j.jfa.20231103.14 DO - 10.11648/j.jfa.20231103.14 T2 - Journal of Finance and Accounting JF - Journal of Finance and Accounting JO - Journal of Finance and Accounting SP - 87 EP - 94 PB - Science Publishing Group SN - 2330-7323 UR - https://doi.org/10.11648/j.jfa.20231103.14 AB - Deposit money banks are the bedrock of Nigerian economy through provision of financial intermediary services to the various sectors, thereby supporting the economic development and growth of the nation. Globalization and the unpredictable business environment have increased the risks facing banks in Nigeria leading to dwindling financial performance. Evidence from literature showed that not many banks have integrated enterprise risk management into their operations. The study adopted ex-post facto research design. The population of the study was all the 12 deposit money banks in Nigeria for the period 2007 – 2021. Total enumeration sampling techniques was used. Data were sourced from the annual reports of the deposit money banks selected for the study. Data were analyzed using descriptive and inferential statistics. Enterprise risk management has significant effect on Net profit margin, Adj.R2 = 0.1791, F (7, 172) = 142.80, P 2 = 0.3702, F (7, 172) = 142.80, < 0.05). The study concluded that enterprise risk management affect the financial performance of deposit money banks in Nigeria. The study recommended that the policy makers should implement robust enterprise risk management frameworks with special focus on combination of leadership control variables with traditional risk management strategies as its effective implementation enhances the overall financial performance of banks. VL - 11 IS - 3 ER -
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