Gusau Journal of Accounting and Finance (May 2024)
CEO ATTRIBUTES AND FINANCIAL DISTRESS LIKELIHOOD OF LISTED DEPOSIT MONEY BANKS IN NIGERIA: MODERATED BY RISK COMMITTEE GENDER
Abstract
Despite the series of reform policies initiated by financial authorities to create good atmosphere for effective and standard banking operation in Nigeria which could ensure their growth and survival, yet some of the bank suffered financial distress over the years due to some likelihood factors. Thus, this study examines the moderating role of risk committee gender on the effect of CEO age and gender on financial distress likelihood of listed deposit money banks in Nigeria for the period of fifteen years between 2007-2021. The population of this study consists of fourteen listed deposit money banks in Nigeria. Correlational research design was adopted to analyze the secondary data extracted from the annual audited financial statement of the banks, using logistic regression technique, based on Multi Discriminant Analysis approach of a modified Althman Z score model. The result depicted that CEO age, CEO gender and risk committee gender significantly influence financial distress likelihood negatively. Furthermore, risk committee gender significantly moderated the effect of CEO age and gender on financial distress likelihood. Thus, it is recommended that the board of the deposit money banks in Nigeria should initiate policy that will specifically; consider average aged bracket or young people in managing the affairs of their banks, which by implication will increase the survival tendency of the listed deposit money banks in Nigeria. On the hand, the 255 board of the listed deposit money banks should also, give priority to female in carrying out the affairs of the banks particularly at the top-ranking management positions considering their risk appetite on financial management. This will go a long way in reducing the rate or tendency for financial distress among the listed deposit money banks in Nigeria.
