Corporate Risk Management as a Moderating Factor of Insider and Concentrated Ownership Structures on Firm Value of Listed Financial Services Firms in Nigeria

Firms often face challenges in enhancing firm value due to governance issues, particularly ownership structures and risk management. Agency problems from insider and concentrated ownership, coupled with inadequate risk management, can misalign management and shareholder interests, negatively impacting firm value. This study examines the moderating effect of Corporate Risk Management (CRM) on the relationship between insider ownership and concentrated ownership structures and the firm value of listed financial services firms in Nigeria. The sample consists of twenty-four (24) firms listed on the Nigerian Exchange Group, with data spanning from 2010 to 2024. A purposive sampling technique was applied to select firms with consistent financial disclosures over the study period. A longitudinal panel research design was employed, utilising panel random effects regression analysis through E-Views 12 software. The results reveal that neither insider ownership nor concentrated ownership individually has a statistically significant direct effect on firm value. However, the interaction between these ownership structures and corporate risk management shows a statistically significant positive impact on firm value. The study concludes that corporate risk management plays a vital role in enhancing the relationship between ownership structures and firm value by mitigating risks and aligning managerial decisions with shareholder interests. The study recommends that Nigerian financial services firms implement comprehensive risk management frameworks and that regulatory bodies promote transparency in ownership structures and risk management practices to improve firm value and ensure long-term sustainability in the sector.

Insider Ownership Structure, Concentrated Ownership Structure

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