CORPORATE RISK MANAGEMENT AND PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study investigates the effect of corporate risk management on the performance of listed deposit money banks (DMBs) in Nigeria from 2013 to 2024, focusing on capital adequacy risk management (CARM) and nonperforming loan risk management (NPLRM). Adopting an ex-post facto design and employing panel estimated generalised least squares (PEGLS) estimation, the study analyses secondary data from banks’ annual reports, the Central Bank of Nigeria (CBN), and the Nigeria Deposit Insurance Corporation (NDIC) publications. The results show that CARM has a positive and significant impact on return on assets (ROA), indicating that stronger capital buffers improve financial stability and profitability. In contrast, NPLRM exerts a negative and significant effect on ROA, revealing that poor asset quality reduces earnings and weakens resilience. The study concludes that sound corporate risk management is essential for enhancing bank performance and recommends prioritising capital adequacy and proactive strategies to reduce non-performing loans and safeguard bank sustainability.