THE INFLUENCE OF ENTERPRISE RISK DIVERSITY COMMITTEES ON FIRM PERFORMANCE: FIRM SIZE AS A MEDIATING VARIABLE

Abstract

This study examined how firm size mediates the effect of various enterprise risk management committee characteristics on the performance of deposit money banks in Nigeria for the period of eleven years (2012–2022). The sample covered ten (10) selected deposit money banks in Nigeria based on data availability. The pooled panel least squares model estimator was employed to analyze the data after checking for the data features and relationships among the interest variables using summary statistics and correlation analysis, respectively. The findings from the model regression estimates are that when firm size moderates enterprise risk management committee gender diversity and enterprise risk management committee expertise, the effect on the performance of deposit money banks in Nigeria is positive and statistically significant for enterprise risk management committee gender diversity, but for enterprise risk management committee expertise, the effect is positive but statistically non-significant. Furthermore, the study notes that enterprise risk management committee expertise, and enterprise risk management committee gender and firm size significantly contribute to positive performance of deposit money banks in Nigeria. The study equally noted that firm size can effectively mediate the effects of enterprise risk management characteristics on the performance of deposit money banks. The study therefore, made recommendations in line with the study findings that deposit money bank enterprise in Nigeria can leverage on their size when considering gender diversity in constituting risk management committee, amongst other things.