EFFECT OF CREDIT RISK MANAGEMENT ON THE CORPORATE PERFORMANCE OF LISTED FINANCIAL SERVICES FIRMS IN NIGERIA
Keywords:
Corporate, Credit, Management, Performance, RiskAbstract
The study evaluated the effect of credit risk management on the corporate performance of listed financial services firms in Nigeria. The specific objectives are to: Examine the effect of loan impairment to total loans ratio on Return on Capital Employed by listed financial services firms in Nigeria. Investigate the effect of the capital adequacy ratio on the Return on Capital Employed of listed financial services firms in Nigeria. An ex post facto research design was adopted for the study. Data was obtained from annual reports and financial statements of Nigeria's financial services industries. The data was analyzed using E-views 10.0. The result revealed that loan impairment to total loan ratio (litlr) has a non-significant positive effect on the return on capital employed of listed financial services firms in Nigeria, also, the capital adequacy ratio exerted a non-significant negative effect on capital employed of listed financial services firms in Nigeria. The study concluded that Credit risk management has a nonsignificant positive impact on the corporate performance of listed financial service firms in Nigeria within the period (2013 – 2022). The study recommended that financial services firms in Nigeria are advised to hire experienced and disciplined risk management professionals and enhance their monitoring mechanism which should be handled by a dedicated department to reduce the incidence of loan impairment.
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