Risk Disclosures and Market Value of Listed Construction/Real Estate Companies in Nigeria

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@article{1705545,
      author = {Dorathy Christopher Akpan, Precious Essang Inwang, Patrick Edet Akinninyi},
      title = {Risk Disclosures and Market Value of Listed Construction/Real Estate Companies in Nigeria},
      journal = {Iconic Research And Engineering Journals},
      year = {2024},
      volume = {7},
      number = {8},
      pages = {314-326},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/17055452.pdf},
      abstract = {Risk disclosure plays a crucial role in shaping investor perception and decision-making, and inadequate disclosures of firms risk management practices may turn out to affect the investors? confidence which may have adverse effect on the firms? market value. The main objective of this
study was to determine the effect of risk disclosures on market value of listed construction/real estate companies in Nigeria from 2013 to 2022. The independent variable of this study being risk disclosure was proxied by credit risk disclosure, liquidity risk disclosure and market risk disclosure while the dependent variable being market value was proxied by earnings multiple. The research design adopted for this study was ex post facto because secondary data were used. The population of the study was 8 construction/real estate firms and purposive sampling technique was employed to select 7 companies. Ordinary least square. regression was adopted to analyze and test the three hypotheses formulated for the study. The statistical software package employed was E-views version 10. The findings of this revealed that credit risk disclosure has a significant positive effect on earnings multiple of listed construction/real estate firms in Nigeria. Liquidity risk has a significant positive effect on earnings multiple of listed construction/real estate firms in Nigeria. And market risk disclosure has a significant positive effect on earnings multiple of listed construction/real estate firms in Nigeria. Based on these findings, it was concluded that risk disclosures have significant effect on market value of listed construction/real estate firms in Nigeria. Thus, it was recommended among others that the management of construction/real estate firms in Nigeria should focus on improving their credit risk management practices. This could involve implementing robust credit assessment processes, monitoring credit exposures effectively, and disclosing relevant information related to credit risks in financial reports and other disclosures outlets.},
      keywords = {Risk Disclosure, Market Value, Credit Risk, Liquidity Risk, Market Risk},
      month = {February},
  }