VOlUME 01 ISSUE 01 APRIL 2022
1Mabur Zumbung Danladi (Ph.D), 2Maram Isa Maren, 3Mike Daspan Gwaska
1,2,3Department of Accounting, Plateau State University, Bokkos, Plateau State.
ABSTRACT
The purpose of the paper is to investigate the relationship between bank size and risk disclosure in Nigeria. Considering the 14 deposit money banks listed on the stock exchange, a partial least squares- structural equation model was run to examine the influence of bank size on the extent of risk disclosure measured through an index based on the information disclosed in their annual reports. Findings from the analysis revealed that bank size has no significant relationship with the risk disclosure of deposit money banks in Nigeria. The possible explanation for such a situation could be that factors other than firm sizes like leverage and others could be responsible for the disclosure of risk-related matters in the deposit money banks in Nigeria. This finding in the banking sector implies that bank size is not important in determining the level of risk disclosure of Deposit money banks in Nigeria. It is therefore recommended that smaller firms should strive hard to increase their capital base by wooing more customers that will be coming with their large assets. Smaller banks may have to engage in radical marketing which is a way of growing their up capital base – wise and as such a position will attract more attention of many different classes of stakeholders such as stockholders.
KEYWORDS:
Bank size, risk disclosure, stakeholders, partial least squares
JEL CODE: G30, G32, G38
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VOlUME 01 ISSUE 01 APRIL 2022
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