Corporate governance and insurance firms’ performance: Empirical study of Nigerian experience
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Date
2013
Authors
Fadun, O. S.
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Abstract
The study investigates the relationship between corporate governance and performance of insurance firms in Nigeria. The data used for the study is derived from five consecutive years (2006 and 2010) audited financial reports of 10 insurance firms listed on the Nigerian stock exchange. This represents 50 firms-years time series observations. Using Pooled Least Square method, the data is processed with E-views software to derive statistical results. The results show varying positive relationship between corporate governance and firm’s performance. The board size, CEO status, audit committee, dividend policy and annual general meeting, all indicate positive relationship between corporate governance and performance of insurance firms in Nigeria. However, the results show negative relationship between block-holders and institutional ownership in relation to firms’ performance. The outcome emphasises the importance of good corporate governance structure in Nigerian insurance firms and the economy at large. The study contributes to knowledge on the subject in two major ways: first, it delivers a more robust and simple understanding of the impact of corporate governance on firm’s performance; and second, It fills knowledge gap because no study has been conducted on corporate governance and firm’s performance in the Nigerian insurance industry.
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Scholarly article
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Citation
Fadun, O. S. (2013). Corporate governance and insurance firms’ performance: Empirical study of Nigerian experience. Journal of Insurance Law and Practice, 3(1), 11-31.