CREDIT RISK GOVERNANCE ON CORPORATE VALUATION IN NIGERIA DEPOSIT MONEY BANK

Abstract

The work examined the effect of credit risk governance on corporate valuation in Nigeria deposit money bank from 2012 to 2023. While firm value is measured by market value shares as dependent and independent are capital adequacy ratio, liquidity ratio, and leverage ratio. Contrary to the argument that capital adequacy ratio and leverage ratio decision is among the important corporate financial decisions in terms of its effect on firm market value, our results show that bank capital adequacy ratio and leverage ratio have a significant effect on market value per share. But our findings justify the view that liquidity ratio has no significant effect on banks market value, though the relationship is negative. Therefore, we recommend that corporate investors in Nigeria prefer should invest in banks than larger firms