Risk Management Committee and Financial Reporting Quality: Evidence from Quoted Deposit Money Banks in Nigeria

Abstract

The study investigated the extent to which presence of Risk Management Committee has exerted influence on Financial Reporting Quality of money Deposit Banks in Nigeria. A total of 10 money deposit Banks were selected for the study. Time series data were obtained from annual report of the money deposit Banks from 2006-2019 Accruals model was used to compute the proxy for financial reporting quality, while risk management committee is calculated by the number of people on the committee board. Regression analysis was used to analyse the data. The study indicate that risk management committee has impact on Financial reporting quality of Money deposit Banks in Nigeria. The study therefore concludes that the Risk management committee should be given upper hand to critically scrutinize investments before the banks invest in them, as most of the portfolios that the Banks carry out are heavily risky in nature. The study recommends that Nigeria secturies and Exchange commission should strengthen it regulation to ensure full compliance since it only 64% of listed Banks compliances and also for Banks to practice prudent risk management and safeguarding of their assets.