Enterprise Risk Management (ERM) Practices and Value of Commercial Banks in Nigeria: A Moderating Effect of Enviromental Uncertainty

The study examines the moderating role of Environmental Uncertainty on the relationship between Enterprise Risk Management and Firm Value. Secondary data were collected from the financial reports of 13 out of 17 banks listed on the Nigerian Stock Exchange (NSE) for the period 2015 to 2019. The data are analyzed using Ordinary Least Square regression with robust standard errors. The results indicate that ERM operation objective has a significant positive effect of firm value, while strategy objective inversely affects value. Both reporting and compliance objectives have insignificant effect on firm value. In addition, environmental uncertainty significantly moderates the relationship between ERM objectives and bank value. The study recommends among others things that regulators of Nigerian banks such as the Central Bank of Nigeria, and Securities’ and Exchange Commission should see the need for strengthening of operation objective as a pressing priority and a more extensive publicity as it improves the value of listed deposit money banks in Nigeria.. The study is of benefits to regulators, Banks, investors, shareholders and other practitioners in understanding how ERM practices effectively influence firm value.