Corporate Governance, Enterprise Risk Management, and Firm Value: Evidence from Financial Service Institutions Listed on the Lusaka Securities Exchange, Zambia

Corporate governance (CG) and enterprise risk management (ERM) have emerged as critical mechanisms for enhancing firm value, particularly within financial service institutions operating in volatile and highly regulated environments. However, despite the increased legislative emphasis on corporate governance and enterprise risk management, empirical research on how these processes interact to affect business value in emerging African capital markets is scarce. This study investigates the effects of corporate governance and ERM on the firm value of financial service organisations listed on the Lusaka Securities Exchange (LUSE), using financial performance as a mediating variable and regulation as a moderator. By using panel data from listed financial service institutions covering the period 2020 to 2024, the study adopts a quantitative explanatory research design. Therefore, firm value is measured using Tobin’s Q, corporate governance is captured through a Corporate Governance Perception Index (CGPI), and ERM is measured using an ERM disclosure index aligned to the COSO framework. The panel regression, mediation, and moderation analyses are employed. The findings reveal that both corporate governance and ERM have positive and statistically significant effects on firm value. In addition, financial performance partially mediates these relationships, while regulatory oversight strengthens the impact of corporate governance and ERM on firm value. This thesis adds to the corporate governance valuation literature by presenting evidence from an understudied emerging capital market and provides policy recommendations for regulators, boards, and investors.