Effect of Board and Corporate Characteristics on Risk Management Disclosure of Listed Insurance Companies in Nigeria

Abstract

The extent to which listed insurance firms in Nigeria disclose risk management is increasing. This led to asking what factors influence the disclosure. This study assessed the effect of board and corporate characteristics on risk management disclosure of listed insurance companies in Nigeria. It investigated whether liquidity, firm size, number of risk management committee (NRMC) and number of risk management meetings (NRMM) influence risk management disclosure of the companies considered by this study. Correlational research design was used. Secondary data was extracted for a sample of 9 firms for 5 years (2013 – 2017). The data were analyzed using panel multiple regression. Fixed and random effect regressions were performed, and random effect regression was suggested after conducting Lagrangian multiplier test effect. The results revealed that NRMC and NRMM are significantly and positively associated with risk management disclosure. Liquidity is significant but negatively associated with risk management disclosure of the companies. It is therefore concluded that firms that disclose risk management information are those with the higher NRMC and NRMM. It is recommended that the managements of listed insurance companies in Nigeria should have more NRMC especially those with expertise in the related area. They should ensure holding meeting frequently due to its significant effect on risk management disclosure of the firms.