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Effect of Risk Management Committee Attributes on the Value of Listed Industrial Goods Companies in Nigeria

This study examined the effect of risk management committee attributes on the value of listed Industrial Goods Companies in Nigeria. Correlation research design was adopted, while the target population was industrial goods companies listed on the Nigerian Exchange Group as at 31st December, 2023 and were 13 in number. Out of the 13 companies listed, 11 were purposively chosen as sample on the criteria that; the company must have been listed on or before 31st December 2014 and have complete annual reports and accounts over the period of the study. Data were collected from annual reports and accounts of the companies for ten years (2014-2023) and analysed using descriptive statistics and Ordinary Least Square. The results of the analyses show insignificant positive impact of risk management committee independence, frequency of meetings, and financial literacy on Tobin’s Q, while risk management committee size was found to have significant negative impact on Tobin’s Q. However, risk management committee gender diversity revealed significant positive impact on Tobin’s Q. Thus, the conclusion that; risk management committee attributes have no significant impact on the value of listed industrial goods companies in Nigeria over the period of the study. Given these results, the study recommends that; listed industrial goods companies in Nigeria should maintain moderate risk management committee size, increase the number of independent directors on the committee with appropriate financial literacy and gender diversity.

Keywords: firms’ value, listed industrial goods companies, Nigeria, risk management committee

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