Effect of Risk Management Committee Characteristics on the Value of Listed Oil and Gas Companies in Nigeria
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Abstract
This study investigates the effect of risk management committee characteristics on value of listed oil and gas companies in Nigeria. The study uses correlational research design. The study utilizes secondary data extracted from the annual report and accounts of the listed firms for a period of 5 years, from 2016 to 2020. Ordinary least square regression was employed in analyzing the data. Findings from the study reveal that risk management committee size has significant negative effect on the value of listed oil and gas companies in Nigeria. On the contrary, risk management committee independence has significant positive effect on the value of the firms. Furthermore, risk management committee diligence does not significantly effect on the value of the firms. The study therefore recommends that the board of directors of Nigerian oil and gas companies should strive to increase firm value by maintaining a reasonable size of risk management committee so as to hasten decision making in areas affecting the value of a firm. The board should also ensure that the committee is made up of a sizeable number of non-executive directors in other to provide more independent decision regarding risk management issues.
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