Risk Management and Financial Performance of Manufacturing Firms in Nigeria

The current study investigated risk management and financial performance of manufacturing firms. Specifically, the study analyzed liquidity risk and market risk effect on after tax profit of manufacturing establishment in Nigeria. The study employed panel data over the period spanning from 2010-2019 across 10 firms. Secondary data were gathered through the annual reports of the selected firms. Correlation analysis and panel-based estimation techniques were used. The outcome showed that liquidity risk positively and significantly affect profit after tax while market risk (measured by interest rate risk) negatively and insignificantly affect profit after tax of sampled firms quoted in Nigeria. This study concluded that efficient and effective risk management will positively affect performance of quoted firms in Nigeria, most specially management of internal risk such as the liquidity risk. Hence, firms should build an internal control system flexible in nature to harness the benefit of internal risk management and also normalize the negative effect of external risk such as the interest rate on performance.

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Synthesis and Conclusion

Capital Markets, Derivatives, and the Law ◽

10.1093/oso/9780190879631.003.0020 ◽

2019 ◽

pp. 443-458

Author(s):

Alan N. Rechtschaffen

Keyword(s):

Civil War ◽

Interest Rate ◽

Liquidity Risk ◽

Market Risk ◽

Interest Rate Risk ◽

Securities And Exchange Commission ◽

Confederate States Of America ◽

Rate Risk ◽

National Bank

This chapter begins with a synthesis of key themes, covering derivatives, debt instruments, and structured notes. It considers the case study Securities and Exchange Commission v. Goldman, Sachs & Co. & Fabrice Tourre. It then describes the Erlanger “cotton” bonds issued by the Confederate States of America to raise money during the Civil War. This is followed by discussions on range notes, internal leverage and market risk, and risks (interest rate risk, liquidity risk, reinvestment risk). The chapter concludes by describing the bulletin issued by the Office of the Comptroller of the Currency on May 22, 2002, to all national bank CEOs and all federal branches and agencies in regard to risky “yield-chasing” strategies that were returning to the markets.

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Corporate governance in relationship with bank risk management

International Journal of Financial Engineering ◽

10.1142/s2424786321500341 ◽

2021 ◽

pp. 2150034

Author(s):

Ika Permatasari

Keyword(s):

Risk Management ◽

Corporate Governance ◽

Credit Risk ◽

Liquidity Risk ◽

Market Risk ◽

Data Sources ◽

Annual Reports ◽

Bank Risk ◽

Financial Reports ◽

The Relationship

The purpose of this research is to examine the relationship between corporate governance and risk management of Indonesian banks. Bank risk managements are measured by market risk, credit risk, and liquidity risk. The samples used in this study were all banks registered in Indonesia during the 2010–2016 period. The data sources were obtained from the annual reports and bank financial reports. The results show that corporate governance implementation in Indonesia was able to affect credit risk and liquidity risk. There were differences in credit risk and liquidity risk in banks with different governance ratings, but not at market risk.

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DAMPAK MANAJEMEN RISIKO PADA KINERJA KEUANGAN BANK UMUM KONVENSIONAL DI INDONESIA

Jurnal Magister Akuntansi Trisakti ◽

10.25105/jmat.v8i1.8148 ◽

2021 ◽

Vol 8 (1) ◽

pp. 29

Author(s):

Kiki Afita Andriyani ◽

Farah Margaretha Leon

Keyword(s):

Risk Management ◽

Financial Performance ◽

Financial Stability ◽

Management Practices ◽

Liquidity Risk ◽

Operational Risk ◽

Interest Rate Risk ◽

Bank Management ◽

Conventional Banks ◽

The Impact

Abstract This study was conducted to examine the impact of risk management on the financial performance of conventional banks in Indonesia. Effective and efficient banking industry financial performance from time to time is highly expected to maintain banking financial stability itself and even the stability of a country. The increase in losses borne by banks as a result of inadequate risk management practices is a major concern of bank management and regulators. The data tested in this study is conventional bank data that listed on the Indonesia Stock Exchange during the 2015-2019 period. Data analysis using Multiple Linear Regression Model. The results show that there is a significant relationship between market risk management (NIM), operational risk management (BOPO) and liquidity risk management (LDR) with bank financial performance (ROA). Meanwhile, credit risk management (NPL) has no effect on bank financial performance (ROA). For this reason, it can be said that adequate risk management practices as demonstrated by the ratio of interest rate risk, liquidity risk and operational risk are the main driving factors for profitability for the banking sector in Indonesia. Therefore, bank management must mobilize resources to understand a sound risk management system which in turn will have an impact on improving the bank's financial performance.Keywords: Conventional Banks, Risk Management, Financial Performance.

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EFFECT OF LIQUIDITY RISK MANAGEMENT ON BANK FINANCIAL PERFORMANCE IN NIGERIA

Research Journal of Management Practice ◽

10.46654/rjmp.1534 ◽

2021 ◽

pp. 19-34

Author(s):

Blessing Ndum ◽

Keyword(s):

Risk Management ◽

Regression Analysis ◽

Financial Performance ◽

Inflation Rate ◽

Stock Exchange ◽

Research Work ◽

Liquidity Risk ◽

Annual Reports ◽

Ex Post ◽

Ex Post Facto

This study ascertained the effect of annual inflation rate on bank financial performance in Nigeria. Ex-Post Facto research design was adopted. Data were extracted from annual reports and accounts of the selected banks in Nigeria. The population of the study comprises of all the twenty (20) deposit money banks operating in Nigeria as at the time of this research work. According to the Nigeria Stock Exchange (NSE), twenty (20) deposit money banks operate in Nigeria as at the end of year 2019. Regression analysis was employed to test the hypothesis with SPSS 20.0. The analysis shows that the annual inflation rate does not positively influence banks’ financial performance. Based on the result, the researcher recommended that banks should be able to anticipate inflation rate periodically to adjust their interest rate in order to make profit.

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Effect of operational and market risk exposures on financial performance of DT-Saccos in Kenya

International Journal of Research in Business and Social Science (2147-4478) ◽

10.20525/ijrbs.v10i5.1282 ◽

2021 ◽

Vol 10 (5) ◽

pp. 107-118

Author(s):

Sisimonda Kinya Mwanja

Keyword(s):

Interest Rate ◽

Financial Performance ◽

Foreign Exchange ◽

Market Risk ◽

Interest Rate Risk ◽

Risk Exposure ◽

Operating Efficiency ◽

Operating Expense ◽

Rate Risk ◽

Exchange Risk

The main aim of the investigation was to analyze the effect of operational and market risk exposures on the financial performance of DT-SACCOs in Kenya. The specific objectives of the study were to; assess the effect of operating expense risk exposure on the financial performance of DT-SACCOs in Kenya; To establish the effect of operation efficiency risk exposure on the financial performance of DT-SACCOs in Kenya; Effect of interest rate risk exposure on the financial performance of DT-SACCOs in Kenya; Effect of foreign exchange rate risk exposure on the financial performance of DT-SACCOs in Kenya. Effect of operational and market risk exposure on the financial performance of DT-SACCOs in Kenya. The study used panel data between the years 2010-2019 which was 10 years period. The results revealed that at both bivariate and multivariate regression operating expense risk, operating efficiency and foreign exchange risk exposure had a significant effect on the financial performance of DT-SACCOs in Kenya. Only interest rate risk exposure did not have a significant effect on the financial performance of DT-SACCOs in Kenya.

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PENGARUH PENERAPAN MANAJEMEN RISIKO TERHADAP KINERJA KEUANGAN SEKTOR PERBANKAN PERIODE 2013-2017

Jurnal Fokus Manajemen Bisnis ◽

10.12928/fokus.v10i1.2075 ◽

2020 ◽

Vol 10 (1) ◽

pp. 102

Author(s):

Deny Ismanto

Keyword(s):

Interest Rate ◽

Credit Risk ◽

Financial Performance ◽

Interest Rates ◽

Foreign Exchange ◽

Stock Exchange ◽

Liquidity Risk ◽

Operational Risk ◽

Interest Rate Risk ◽

Rate Risk

This study discusses liquidity risk, credit risk, operational risk, and interest rates risk on finance performance at the National Private Foreign Exchange Commercial Bank listed on the Indonesia Stock Exchange for the period 2013-2017. In this study, the independent variables are liquidity risk, credit risk, operational risk and interest rate risk and the dependent variable is financial performance. The object of research is the National Private Foreign Exchange Private Bank listed on the Indonesia Stock Exchange for the period 2013-2017. The population in this study was 23 banks. The sampling technique using purposive sampling method, based on research criteria, the research sample won 11 banks. The analysis tool used is panel regression data with eviews 6. The data used in this study is secondary data obtained from the official website pages of the Indonesia Stock Exchange and Bank Indonesia. Partially, the results of the study indicate that negative liquidity risk is not significant to finance, negative credit risk is significant to finance, operational risk is significantly negative to financial performance, and interest rates increase significantly positive to finance. Simultaneously liquidity risk, credit risk, operational risk and interest rate risk affect financial performance.

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Impact of COVID-19 on the Corporate Governance: A Case Study on Bajaj Finance Ltd and Infosys

Shanlax International Journal of Management ◽

10.34293/management.v8i4.3736 ◽

2021 ◽

Vol 8 (4) ◽

pp. 17-23

Author(s):

Samira Patra ◽

Jnanaranjan Das

Keyword(s):

Risk Management ◽

Corporate Governance ◽

Internal Control ◽

Secondary Data ◽

Capital Allocation ◽

Annual Reports ◽

Economic Activities ◽

Business Operations ◽

Novel Coronavirus ◽

The Impact

Introduction: The Novel Coronavirus has been bringing various revolutionary dynamic aspects to the World. It taught us many useful lessons. The COVID-19 has an impact on almost all human and economic activities. Lakhs of people have retrenched from their jobs in the India Corporate Sectors. The Indian Corporate Sectors have been affected slightly in the Financial Year 2019- 20, but it will have a severe impact in the current and future financial years. It can also seem in the Corporate Governance of the different companies in India. It has inherent commercial risks impacting business operations due to disruptions to Meetings, Dividends, Liquidity, Disclosure, Capital Allocation, Risk Management, and Internal Control.Research Gap: A lot of researches have been undertaken on the impact of COVID-19 in India. No remarkable studies have been conducted on the Impact of COVID-19 in the Corporate Governance of Bajaj Finance Ltd and Infosys.Objectives: This paper attempt to study the impact of COVID-19 on the Corporate Governance of Bajaj Finance Ltd and Infosys.Research MethodologyNature and Sources of Data: The present study is based on secondary data. The secondary data have been collected through a well-designed strategy. These have been collected from various e-journals, e-magazines, e-annual reports of companies, and various reputed websites.Tools of Analysis: There are various statistical tools, i.e., percentage calculations, correlation, and t-Test have used for analysis and interpretation of results.Conclusions: COVID-19 pandemic comes with inherent commercial risks impacting business operations due to disruptions to Meetings, Administration, Business Continuity, Dividend and Liquidity management, Disclosure, Capital Allocation, and Maintenance, and lastly, risk management and Internal Control.

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PENGARUH RISIKO KREDIT, RISIKO PASAR DAN RISIKO LIKUIDITAS TERHADAP KINERJA KEUANGAN PERBANKAN (Studi pada Bank Umum Konvensional yang terdaftar di Bursa Efek Indonesia periode 2014-2018)

Journal Competency of Business ◽

10.47200/jcob.v4i1.676 ◽

2020 ◽

Vol 4 (1) ◽

pp. 1-9

Author(s):

Natalia Desiko

Keyword(s):

Credit Risk ◽

Financial Performance ◽

Research Method ◽

Liquidity Risk ◽

Secondary Data ◽

Total Sample ◽

Market Risk ◽

Sampling Techniques ◽

Significant Positive Effect ◽

Positive Effect

This study aims to determine the effect of credit risk on the financial performance of banks, the effect of market risk on bank financial performance, the effect of liquidity risk on bank financial performanc. The research method used in this is a quantitative method. The population observed in this study was all conventional cemmercial banks listed on the idx for the period 2015 to 2018. The population in this study was 42 banking companies sampling techniques with a total sample of 56. The type of data used is secondary data. The results showed that Credit Risk (NPL) no significant positive effect on finanial performance (ROA), Market Risk (NIM) has a significant positive effect on bank financial performance (ROA). Liquidity Risk (LDR) has a significant positive effect on bank financial performance (ROA). Credit risk (NPL), market risk (NIM) and liquidity risk (LDR) have different effects. Because seen by the t test, where there are variables that cannot be seen.

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LIQUIDITY RISK MANAGEMENT AND FINANCIAL PERFORMANACE OF STATE OWNED ENTERPRISES IN KENYA

International Journal of Finance and Accounting ◽

10.47604/ijfa.1407 ◽

2021 ◽

Vol 6 (2) ◽

pp. 12-28

Author(s):

Ambrose Jagongo ◽

Emmy Rop

Keyword(s):

Risk Management ◽

Financial Performance ◽

Liquidity Risk ◽

Field Research ◽

Secondary Data ◽

Policy Formulation ◽

Unique Contribution ◽

Risk Management Process ◽

The Government ◽

Desk Research

Purpose: The study sought to investigate the effect of liquidity risk management on financial performance of state owned enterprises in Kenya. Materials and Methods: The study adopted a desktop methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library Results: The results revealed that the studies done had conceptual framework gap. The study also found out that the study had geographical gap because they were not conducted in Kenya and also had different time scope Unique contribution to theory, practice and policy: The study will be significant to state owned enterprises, students, general public and State Corporations Advisory Committee as it will offer contributions from both a theoretical and practical perspective. Regulatory bodies such as SCAC as well as the government can utilize the findings from the study to improve on the framework for policy formulation and regulation. The study also recommends the Commercial and manufacturing state Corporations to adopt efficient strategies to improve financial performance through risk management process.

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Pengaruh Indikator Ekonomi Makro, Kinerja Keuangan Perusahaan, Dan Risiko Sistematis terhadap Harga Saham

Jurnal ULTIMA Accounting ◽

10.31937/akuntansi.v4i2.130 ◽

2012 ◽

Vol 4 (2) ◽

pp. 24-51

Author(s):

Hellen Tiara Fatrin ◽

Ratnawati Kurnia

Keyword(s):

Interest Rate ◽

Financial Performance ◽

Stock Price ◽

Systematic Risk ◽

Secondary Data ◽

Financial Statements ◽

Annual Reports ◽

Macroeconomic Factors ◽

Return On Equity ◽

Macroeconomic Factor

The objective of this research is to examine the effect of macroeconomic factors, financial performance and also systematic risk partially and simultaneously toward stock price. The macroeconomic factors are proxied by inflation and Bank Indonesia interest rate, company financial performance are proxied by Price Earning Ratio (PER), Earning per Share (EPS), Return on Asset (ROA), and Return on Equity (ROE), and also systematic risk is proxied by beta. The object of this study are companies which have listed in Indeks LQ-45 in period 2007-2011. The samples are 11 companies determined based on purposive sampling. Data used in this study is secondary data such as financial statements, annual reports, inflation rate, Bank Indonesia interest rate, and stock price. The results of this study are (1) macroeconomic factor proxied by inflation does not have partial significant effect to stock price (2) macroeconomic factor proxied by Bank Indonesia interest rate does not have partial significant effect to stock price (3) company financial performance proxied by Price Earning Ratio has partial significant effect to stock price (4) company financial performance proxied by Earning per Share has partial significant effect to stock price (5) company financial performance proxied by Return on Asset does not have partial significant effect to stock price (6) company financial performance proxied by Return on Equity does not have partial significant effect to stock price (7) systematic risk proxied by Beta does not have partial significant effect to stock price (8) macroeconomic factors,company financial performances, and systematic risk have simultaneous significant effect to stock price. Keywords: macroeconomic factor, financial performance, systematic risk, inflation, Bank Indonesia interest rate, Price Earning Ratio (PER), Earning per Share (EPS), Return on Asset (ROA), and Return on Equity (ROE), beta, stock price.

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