Board Attributes, Risk Management Committee and Firm Survival: A Proposed Model for Listed Manufacturing Companies in Nigeria

Abstract

The survival and success of a firm are intricately linked to the composition and dynamics
of its board of directors. This is because boards have significant influence in determining
a firm’s strategic decisions, risk management, and overall governance. However, the
precise mechanism and specific attributes of the board that contribute to sustained firm
success remained unclear, as studies in this area document conflicting outcomes without
considering circumstances that could enhance the relationships amongst the variables.
Hence, identifying the main board attributes that correlate with enhanced firm survival is
imperative for informing effective corporate governance practices and facilitating
proactive measures to ensure organizational resilience. Therefore, this study proposes a
conceptual framework for investigating the moderating effect of risk management
committee on the relationship between board attributes and firm survival among listed
manufacturing companies in Nigeria using the model approach. The contribution of this
study lies in the conceptualization and incorporation of the risk management committee
into the board attributes – firm survival relationship. Inclusion of this variable could help
the firms to create an effective corporate governance system that will lead to an increased
firm survival. Thus, the study adds to the existing literature on board attributes, risk
management committee and firm survival. It is hoped that the implementation of this
model will help listed manufacturing firms in Nigeria establish boards that will be
beneficial to their long-term survival.
Keywords: Firm survival, Board attribute