CORPORATE GOVERNANCE AND RISK MANAGEMENT FRAMEWORKS: AN EMPIRICAL INVESTIGATION OF NIGERIAN DEPOSIT MONEY BANKS IN THE POST-CONSOLIDATION ERA
This study examines the impact of board independence, a key corporate governance mechanism, on risk management in Nigerian banks following the post-consolidation reforms. Analyzing panel data from 14 banks (2009-2018) using regression analysis, the findings reveal a mixed outcome. Board independence significantly strengthens capital adequacy but has no significant effect on asset quality (credit risk) or liquidity. This indicates a “governance decoupling,” where formal compliance exists without deep integration into core risk culture. The study concludes that while governance reforms have fortified capital buffers, their effectiveness in curbing credit risk and optimizing liquidity remains limited, calling for a strategic re-evaluation of board oversight.
Keywords: Corporate Governance, Risk Management, Board Independence, Nigerian Banks.
