Moderating Effect of Risk Management Committee Expertise on the Relationship Between Credit Risk and Value of Listed Deposit Money Bank in Nigeria

Abstract

The effect of credit risk on value of banks has become a global phenomenon, even the well performing banks are suddenly plunged into crisis if risk is not carefully monitored. The objective of this study is to examine the effect of credit risk on value of listed deposit money banks in Nigeria׃ moderating effect of risk management committee expertise. The study has been designed to cover a period of twelve (12) years (2013 - 2024). The ex-post facto (correlational) research design has been used. The 13 listed deposit money banks in Nigeria formed the population of the study out of which twelve (12) companies have been selected to form the sample. The multiple linear regression, correlation and descriptive statistics have been used to analyze the data. The risk management committee expertise has negatively and insignificantly moderated the relationship between credit risk and price to book value and the Firm Size has negative and significant effect on Price to Book Value. The study recommended that banks in Nigeria should make sure that ability to pay loans should be given utmost regards rather than just depending on collaterals.