FINANCIAL RISK DISCLOSURE AND FIRM STABILITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Financial risk disclosure plays a significant role in influencing a firm's stability by enhancing transparency, promoting effective risk management, informing decision-making, building investor confidence, ensuring regulatory compliance, and enhancing stakeholder trust and reputation. The study examined the effects of financial risk disclosure on firm’s stability of listed deposit money banks in Nigeria. The financial risk disclosure variables studied were credit risk, liquidity risk and market risk disclosure. Firm’s stability was measured using capital adequacy. The research design employed in this study was ex-post facto research design. The population of the study was 14 deposit money banks as stipulated in Nigerian exchange fact book. The study covered a period of ten (10) years -2013 to 2022. The study utilized secondary data that were extracted from annual reports and account of listed deposit money banks in Nigeria. Descriptive statistics were used to summarize the mean, median, minimum mean, maximum mean and the standard deviation value of the study. Ordinary least square regression analysis was used to analyze the research hypotheses and the statistical package used was E-views 10. The finding of the study revealed that liquidity risk and market risk disclosure have a significant positive effects on capital adequacy, but credit risk disclosure has no significant effect on capital adequacy. The study concluded that financial risk disclosure has significant effect on firm’s stability of listed deposit money banks in Nigeria. It was recommended to reconsider the emphasis on credit risk disclosure which suggests that banking institutions should broaden their focus beyond just credit risk when assessing firm stability.