Corporate Governance Practices and Financial Performance of Quoted Insurance Firms in Nigeria

Abstract

This study empirically investigated the relationship between corporate governancepractices and financial performance of quoted insurance firms in Nigeria. Corporate governance practices were proxied by audit board composition, board size and audit committee size while financial performance was proxied by profit after tax. The population of the study consists of 23 quoted insurance firms in Nigeria. The study adopts judgmental sampling techniques to select 15 quoted insurance firms in Nigeria. Secondary data were obtained from audited annual financial reports of quoted insurance firms from 2010-2022. The study adopts ordinary least square regression to test hypotheses formulated for the study with the aid of Eviews 10 econometrics statistical software. The findings show that audit committee size had positive and insignificant impact on profit after taxof quoted insurance firms in Nigeria. Empirical evidence shows that board composition had positive and significant impact on profit after tax of quoted insurance firms in Nigeria. Empirical evidence indicates that board size had negative and insignificant impact on profit after tax of quoted insurance firms in Nigeria. Empirical evidence of the overall model suggest that audit committee size, board composition and board size jointly had positive and significant impact on profit after tax of quoted insurance firms in Nigeria. The study concludes that audit committee size, board composition and board size improved financial performance of quoted insurance firms in Nigeria. Thus the study recommends among others that corporate board structures and audit committee should be based on professional qualification, skills, experience and competency and ensures accountability, transparency and effective internal control assessment to improve financial performance. Board size with large proportion of non executive members will boost financial performance, because large board sizesthat are independent are more

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