Professor Ambrose A. Okwoli1 , Mabur Zumbung Danladi2 and Samson I. Nyahas3 1
Department of Accounting, University of Jos, Nigeria 2Department of Accounting, Plateau state University, Bokkos, Nigeria 3Department of Accounting, University of Jos, Nigeria Corresponding Author: zumbungson1@gmail.com Phone number: +234 8032248298
ABSTRACT
The purpose of the paper is to investigate the relationship between board size and risk disclosure
in the Nigerian context. 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 board 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 board size has a significant
relationship with the risk disclosure of deposit money banks in Nigeria. The possible explanation
for such a situation could be the fact that as some of the members of the board are outsiders,
they would want the banks to disclose their risk related information so that they can properly
partake in the decision making process of the organisation when the time comes. The implication
of this finding in the banking sector is that, board size is important in determining the level of
risk disclosure of Deposit money banks in Nigeria. It is therefore recommended that policy
makers should ensure that the number of members of a board be increased from the normal
minimum of five (5) to nine (9) as such larger boards lead to diversity that would assist firms in
safeguarding their resources and as well, lessen the uncertainties in their operating environment
and ensure effective management decision including effective risk disclosure.
Key words: Board, risk, disclosure, size