NEXUS BETWEEN RISK MANAGEMENT AND FINANCIAL PERFORMANCE OF LISTED CONGLOMERATE FIRMS IN NIGERIA

This study examines the nexus between risk management and financial performance of listed conglomerate firms in Nigeria from 2021 to 2025. The study specifically investigates the effect of risk management on return on assets (ROA) and Tobin's Q, while controlling for board meetings, firm age, firm size, and financial leverage. Using panel data drawn from the annual reports of all six listed conglomerate firms, yielding 30 firm-year observations, the study employs robust ordinary least squares regression analysis grounded in agency theory. The descriptive statistics reveal considerable variability in firm performance, with ROA exhibiting high dispersion and negative values. The correlation analysis indicates that multicollinearity is not a serious concern, as all VIF values are below 2. The regression results demonstrate that the ROA model is jointly statistically significant, explaining approximately 44.15% of the variation in ROA. However, only financial leverage exhibits a statistically significant negative effect on ROA at the 1% level, suggesting that higher debt levels substantially weaken accounting-based firm performance. Risk management disclosure, board meetings, firm age, and firm size do not significantly influence ROA. For Tobin's Q, the model is marginally significant at the 10% level, explaining approximately 29.36% of the variation, with financial leverage showing a weak positive effect at the 10% level. Risk management disclosure does not significantly affect Tobin's Q. These findings suggest that risk management disclosure alone does not translate into improved financial performance in Nigerian conglomerate firms, and that excessive leverage undermines profitability. The study recommends that management prioritize prudent capital structure decisions, embed risk management into strategic processes beyond mere disclosure, and that regulators strengthen oversight on risk management implementation.