IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Risk Governance and Bank Performance: Do Risk Committee Activism and Finance Experts on the Risk Committee Matter?

Risk Governance and Bank Performance: Do Risk Committee Activism and Finance Experts on the Risk Committee Matter?
View Sample PDF
Author(s): John Agyekum Addae (Ghana Communication Technology University, Ghana & University of Aveiro, Portugal) and Emmanuel Numapau Gyamfi (Ghana Institute of Management and Public Administration, Accra, Ghana)
Copyright: 2022
Pages: 17
Source title: Handbook of Research on New Challenges and Global Outlooks in Financial Risk Management
Source Author(s)/Editor(s): Mara Madaleno (GOVCOPP, University of Aveiro, Portugal), Elisabete Vieira (GOVCOPP, University of Aveiro, Portugal) and Nicoleta Bărbuță-Mișu (University of Galati, Romania)
DOI: 10.4018/978-1-7998-8609-9.ch006

Purchase


Abstract

Global discourse is geared towards greater accountability and regulatory oversight of banks to promote sound financial systems and charter value. The authors applied dynamic pool panel analysis to investigate the relationship between risk governance and financial performance among African global banks spanning the years 2015 to 2020. They find significant positive association between financial experts on risk committee and bank profitability. The results further reveal that risk committee activism as a proxy for risk committee effectiveness significantly increase bank profitability. Therefore, stakeholders must prioritize regular risk committee meetings and attach importance to risk committee compositions with finance experts on the majority. Additionally, this study offers policy implications for regulators and bank mangers to clearly define risk committee financial experts and minimum financial experts required to serve on the risk committee.

Related Content

Elisabete Vieira, Nicoleta Barbuta-Misu, Mara Madaleno. © 2022. 24 pages.
Fitim Deari, Hai Hong Trinh. © 2022. 13 pages.
João Teodósio, Elisabete Vieira, Mara Madaleno. © 2022. 26 pages.
Júlio Lobão. © 2022. 19 pages.
João Jungo, Wilson Luzendo, Yuri Quixina, Mara Madaleno. © 2022. 16 pages.
John Agyekum Addae, Emmanuel Numapau Gyamfi. © 2022. 17 pages.
Mara Madaleno, Jorge Mota, Fábio Brandão. © 2022. 32 pages.
Body Bottom