Corporate Governance Mechanisms and Financial Performance of Quoted Insurance Companies in Nigeria
Foluso Olugbenga Aribaba & Lateef Olamide Ahmodu
Department of Accounting and Finance, Elizade University, Ilara- Mokin, Ondo State,
Department of Management Sciences, Wesley University, Ondo, Nigeria
E-mail: folusoaribaba2003@yahoo.com,ahmoduolamidelateef10@gmail.com
Corresponding Author: Lateef Olamide Ahmodu
ABSTRACT
The study empirically investigates the relationship between corporate governance and financial performance of quoted insurance companies in Nigeria within the period 2009 – 2015. It also ascertains the relationship between board size, board independence, audit committee supervision, board gender diversity and financial performance of quoted insurance companies in Nigeria. The study employs panel data of nineteen (19) sampled insurance companies quoted on the Nigerian Stock Exchange. Data were collected from annual audited reports of the quoted insurance companies. Panel OLS regression methodology was used to analyze the data and the data were regressed with the aid of EVIEWS 7.0 econometric software package. The study revealed that board size, board independence and audit committee composition have negative effect on financial performance while board gender diversity positively influences financial performance. However, none of the corporate governance variables (BZS, BDI, BGD and AUD) significantly influence financial performance (ROE). The study therefore recommends that steps should be taken for mandatory compliance with the code of corporate governance by management of insurance companies in Nigeria. Keywords: Corporate Governance, Financial Performance and Insurance Company.
