Pages: (65-77 )
Abstract
The study examined the effect of enterprise risk management on performance of listed insurance companies in Nigeria. The study employed the ex post facto research design. The population consisted of 23 insurance companies listed on the Nigeria Stock Exchange as
30th December, 2019 according to Nigeria Stock Exchange (NSE). The sample size consisted of 10 insurance companies in Nigeria. It employed the convenience sampling technique in selection of the sampled companies. Data from the research were obtained from financial
statements and annual reports of the sampled companies. Validity and Reliability were premised on statutory audit of the financial statements. Data were analysed through Descriptive and Inferential (multiple regression) statistics.
The findings revealed that enterprise risk management does not have significant effect on earnings per share of listed insurance companies in Nigeria (Adj.R2= 0.011315, F(3)= 1.377662, p>0.05); there is no significant effect of enterprise risk management on return on assets of listed insurance companies in Nigeria (Adj.R2= -0.025554, F(3)= 0.177740, p>0.05), and there is no significant effect of enterprise risk management on return on equity of listed insurance companies in Nigeria (Adj.R2= -0.028922, F(3)= 0.072417, p>0.05).The study concluded that enterprise risk management does not significantly affect financial performance of quoted insurance companies in Nigeria. The study recommended that risk committee members should be effective in management of risk related matters and also ensure that the committee is given its independence to function since it showed a positive relationship on performance and risk committee meeting should be held frequently in order to increase performance.
Keywords: Earnings per share, Risk committee independence, Risk committee meeting, Risk committee size, Enterprise risk management and Performance,