Moderating Effect of Risk Management Committee Expertise on the relationship between Interest rate risk and Value of Listed Deposit Money Banks in Nigeria
Keywords:
interest rate risk, value of banks, risk management committee expertise, price to book value, multiple linear regression, correlation, descriptive statistics, NigeriaAbstract
The effect of interest rate risk on value of banks has become a global phenomenon, even the well performing banks are suddenly plunged into crisis if risk is not carefully monitored and managed. Several studies have been conducted on the relationship between interest rate risk and value of listed deposit money banks in Nigeria. This study introduced risk management committee expertise as a moderator to examine the effect of the relationships between these variables. The objective of the study is to examine the moderating effect of risk management committee expertise on the relationship between interest rate risk and value of listed deposit money banks in Nigeria. The study covered a period of twelve (12) years (2013 - 2024). The ex-post facto (correlational) research design was used. The 14 listed deposit money banks in Nigeria formed the population of the study out of which twelve (12) companies were selected to form the sample. The multiple linear regression, correlation and descriptive statistics were used to analyze the data. The findings of the study revealed that risk management committee expertise has positively and significantly moderated the relationship between interest rate risk and firm’s value of listed deposit money banks in Nigeria. Firm Size has negative and significant effect on Price to Book Value. The study recommended that interest rate risk should always be managed well because fluctuation of interest rate in the capital market can have a far reaching effect on Firm Value.
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