VALUE RELEVANCE OF RISK DISCLOSURE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

This study investigates the value relevance of risk disclosures among listed deposit money banks in Nigeria. The population consists of 12 deposit money banks quoted on the Nigeria Exchange Group as at 31st December, 2023. Data collected were sourced from the annual reports of the banks from 2009 to 2022. Panel data collected were analyzed using descriptive statistics, and regression analysis. The analysis reveals that credit, liquidity, loan default, foreign exchange and interest rate risks have insignificant effects on share prices, but the effects are positive for liquidity and loan default risks, and negative for credit, foreign exchange and interest rate risks. However, earnings per share, book value per share, and firm size are significant predictors of the listed banks’ share prices. The study concludes that share prices of listed banks in Nigeria are influenced by accounting information and size of the banks rather than its risk information disclosure. The policy implication is that management of listed banks should pay attention to accounting policies and standards that form bases for determining accounting information issued by the banks rather than risk information disclosures. The findings also have implications for the investors, stock market regulators and other players.