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Article
Publication date: 9 October 2023

Olayinka Erin, Johnson Ifeanyi Okoh and Nkiru Okika

In recent time, stakeholders have called on corporate organizations to develop risk governance (RG) model that could strengthen effective risk disclosure quality (RDQ). Based on…

Abstract

Purpose

In recent time, stakeholders have called on corporate organizations to develop risk governance (RG) model that could strengthen effective risk disclosure quality (RDQ). Based on this premise, the purpose of this study is to examine the influence of RG on RD quality of 120 corporate organizations.

Design/methodology/approach

RG was measured by board risk committee size, board risk committee independence, board risk committee gender diversity, board risk committee expertise, board risk committee effectiveness, chief risk officer (CRO) presence and enterprise risk management (ERM) framework. This study has used both ordered logistic regression and probit regression to analyze the data set.

Findings

The number of members on the board risk committee, the proportion of women on that committee, the board expertise, the committee’s effectiveness, the presence of a CRO and the existence of an ERM framework were all found to have an impact on the quality of the risk information disclosed.

Practical implications

The study emphasizes the need for strong collaboration between the corporate board and external assurance in enhancing the quality of RD.

Originality/value

The findings contribute to growing literature in the area of RG and RD in Nigeria and by extension other sub-Saharan African countries.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

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