Risk Disclosures and Corporate Value of Listed Insurance Companies in Nigeria

Abstract

This study assessed the effect of risk disclosure on the corporate value of insurance companies listed on the Nigerian Exchange Group (NGX). Specifically, it examined the effects of underwriting, compliance, operational, and liquidity risk disclosures on corporate value, measured using Tobin’ s Q. An ex post facto research design was adopted, with secondary data obtained from the annual reports and audited financial statements of all twenty-two (22) listed insurance companies for the period 2015– 2025. The study employed a census sampling technique, while panel regression analysis was used to determine the relationships among the variables following appropriate diagnostic tests. Based on the Hausman specification test, the Fixed Effects Model was considered the most suitable estimation technique. The results showed that underwriting risk disclosure and liquidity risk disclosure had positive and significant effects on corporate value. In contrast, compliance risk disclosure exerted a significant negative effect, while operational risk disclosure had a negative but insignificant effect. The regression model was statistically significant and accounted for approximately 45.3% of the variation in corporate value. The study concluded that effective risk disclosure improves transparency, reduces information asymmetry, and shapes investors’ assessment of listed insurance companies. It therefore recommends stronger underwriting and liquidity risk reporting and a balanced presentation of compliance risks that reflects effective risk management and regulatory adherence.