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

Firms often struggle to enhance firm value due to governance challenges related to ownership structures and the effective management of risks. In particular, the relationship between ownership structures, such as foreign and managerial ownership, and firm value is often complicated by agency problems, where the interests of management and shareholders may not align. This study examines the moderating effect of Corporate Risk Management (CRM) on the relationship between foreign ownership, managerial ownership structures, and firm value of listed financial services firms in Nigeria. A longitudinal panel research design was employed, utilizing panel random effects regression analysis with E-Views 12 software. The sample consists of twenty-four (24) firms listed on the Nigerian Exchange Group (NGX), with data spanning from 2010 to 2024. A purposive sampling technique was applied to select firms with consistent financial disclosures over the study period. The results reveal that neither foreign ownership nor managerial ownership individually has a statistically significant effect on firm value. However, the interaction between these ownership structures and corporate risk management shows a statistically significant and positive effect 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 enhance transparency in ownership structures and risk management practices to improve firm value and ensure long-term sustainability in the sector.

Foreign Ownership Structure, Managerial Ownership Structure, Firm Value Tobin Q Ratio

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