VALUE RELEVANCE OF FINANCIAL RISK MANAGEMENT

Abstract

This study evaluated value relevance of financial risk management of listed deposit money banks in Nigeria. The objective of the study was to investigate whether credit risk management has significant effect on share price of listed deposit money banks in Nigeria. The secondary source of data collection was adopted in the study where the purposive sampling technique was used to select a sample size of ten (10) listed firms for the study. Least Square regression analysis was used in this study and the findings revealed that credit risk management has no significant effect on share price of listed deposit money banks in Nigeria. It was concluded that risk management disclosure was a very important practice required of corporations in this ever- rapid changing business environment as it affects corporate achievements. Finally, it was recommended that the banks should manage their operations in a way that optimizes their earnings and profits in order to mitigate the credit risks of loss occasioned by exchange rate conditions in Nigeria's banking sector.