Enterprise Risk Management and Financial Performance: Evidence from Listed Deposit Money Banks in Nigeria

The study investigates the influence of enterprise risk management attributes, namely Value-at-Risk, leverage ratio, board size, firm size, and risk management committee characteristics, on the financial performance of quoted deposit money banks in Nigeria. The study employs panel data obtained from 13 banks over the period 2014–2025, resulting in 156 bank-year observations. Financial performance is assessed using four indicators: Return on Assets (ROA), Return on Equity (ROE), Tobin’s Q, and Net Interest Margin (NIM). Employing Pooled OLS, Fixed Effects, and Random Effects regression selected via the Lagrange Multiplier and Hausman tests, results show leverage ratio and firm size significantly predict performance, while VaR, board size, and RMC show no significant effect at 5%. Leverage negatively affects profitability and valuation; firm size positively predicts returns but negatively predicts valuation. Capital structure and scale matter more than risk-governance presence alone.