Effect of Corporate Governance on Earnings Management of Commercial Banks in Nigeria

Abstract

The main objective of the study is to examine the effect of corporate governance on risk management of commercial banks in Nigeria. Specifically, the study sought to ascertain the influence of board committees on the liquidity risk of banks in Nigeria. The study adopted ex-post facto research design. Simple random sampling had been applied in the selection of banks used in the study. The effect of independent variable on the dependent variable was examined using ordinary least square regression method. The result of the hypothesis tested in specific terms showed that board committees negatively but significantly influences the liquidity risk of commercial banks in Nigeria. This implies that increase in the number of board committees will result to decrease in the way commercial banks in Nigeria manage their liquidity risk. The study recommends that the number of board committees of commercial banks in Nigeria should be small in order to be effective and efficient in their risk management functions.