Title: Risk governance and bank performance in Sub Saharan Africa: dynamic panel evidence

Authors: Adamu Yahaya; Fauziah Mahat; B.T. Matemilola

Addresses: Department of Accounting and Finance, School of Business and Economics, Universiti Putra, P.M.B 43400, Serdang, Malaysia; Department of Business Management, Federal University Dutsin-Ma, P.M.B 5001, Dutsin-Ma, Nigeria ' Department of Accounting and Finance, School of Business and Economics, Universiti Putra, P.M.B 43400, Serdang, Malaysia ' Department of Accounting and Finance, School of Business and Economics, Universiti Putra, P.M.B 43400, Serdang, Malaysia

Abstract: Risk governance practice is gaining prominence as a result of its active role in addressing risk related issues within the banking sector. The study investigates the effect of risk governance on the performance of listed commercial banks in Sub Saharan African region. A sample of 50 banks from six (6) SSA countries were drawn between the periods of 2010-2018. Data were collected from the annual report of the banks while World Bank database supplements the data for the macroeconomic variables. The two-step system GMM technique was used to analyse the data collected and findings from the study revealed that, risk experience members have strong positive effect on the performance of banks. The study recommends among others to ensure adequate risk experience members in the risk committee of the banks. Moreover, recognizing the office of chief risk officer within the banking corporate governance contribute towards better banking performance.

Keywords: risk experience members; risk committee; SSA; Sub Saharan Africa; system generalised method of moment; ROA; return on asset.

DOI: 10.1504/IJMEF.2020.109990

International Journal of Monetary Economics and Finance, 2020 Vol.13 No.4, pp.317 - 340

Received: 27 Feb 2020
Accepted: 18 Mar 2020
Published online: 30 Sep 2020 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article