ABSTRACT
The study investigated the effect of corporate governance on performance of insurance companies in Nigeria with specific objectives to ascertain the effect of corporate governance on profit after tax of insurance companies in Nigeria, It collected secondary data from various annual report of the sampled insurance companies in Nigeria. The study adopted ex post facto research design and extracted board size, board independence, number of female board members, Return on Asset, Return on Equity and Profit after tax. The study employed the ordinary least squared based multiple regression method of data estimation and found that there has been strong evidence from the hypotheses tested that corporate governance proxies jointly have significant effect on return on assets, profit after tax and return on equity of the firms. The study therefore concludes that corporate governance has significant effect on performance of insurance companies in Nigeria. Based on the findings of the study, the researcher recommended that Insurance companies should ensure that there is cooperation among board members, and that they should ensure that board are adequately constituted so as to influence performance in a way that it would positively affect return on assets.
TABLE OF CONTENTS
Tille page 1
Declaration 11
Certification 111
Dedication JV
Acknowledgements v
Table of contents vi ·
List of tables x
Abstract Xl
CHAJJ>TER ONE: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 5
1.4 Research Questions 5
1.5 Research Hypotheses 6
1.6 Scope of the Study I. 6
1.7 Significance of the Study 7
CHAPTER TWO: LITERATURE REVIEW
2.1 Conceptual Framework 8
2.1.1 Historical background of corporate governance 8
2.1.2 Principles for corporate governance 10
2.1. Benefits of good ''c· orporate governance 12
2. J .11 Corporate Governance Codes in Nigeria 1
2.1.5 Corporate 'governance mechanisms 15
Board Size 16
Directors' remuneration .
Executive directors' remuneration 19
Non-executive director's remuneration 20
Audit committee composition 21
Board indep~nqence 22
Women Board Member 25
2.1.6 Financial performance 27
2.1.6.1 Return on Equity (ROE)
2.1.6.2 Return on Asset (ROA) 29
2.1.7 Overview of the Nigerian insurance industry 29
2.2 Theoretical Framework 31
2.2. l Agency theory 31
2.2.2 Stewardship Theory 33
2.2.3 Stakeholder Theory 34
2.2.4 Resource Dependency Theory 34
2.3 Empirical Review 35
2.3.1 Summary of Empirical Review 51
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design I
3.2 Area of The Study 66
3.3 Population of The Study 67
3.5 Method of Data Collection 68"
3.6 Method of Data Analysis 68
3.G.1 Regression analysis 68
3.6.2 Adjusted coefficient of determination (IF). 68
3.G.3 F-statistic 68
3.G.3 T-Statistic 69
3.7 Model Specification and Functional Definition of Variables 69
CHAPTER FOUR: DATA PRESENTATION, RESULTS AND :,;)JSCUSSION ·
4.1. Data presentation 72
4.2. Discussion on descriptive statistics of the variables 72
'-t.3. Analysis and discussion of unit root test 75
4.4. Analysis and discussion df results 77
4.4. l. Effect of Corporate Governance on Profit after tax 77
4.4.2. Effect of Corporate Governance on Return on Equity 80
4.4.3. Effect of Corporate Governance on Return on Assets 82
4.5. Test of hypotheses 84
CHAPrfER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1. Summary of Findings
5 .2. Conclusion
5.J. Recommendations
REFERENCES
APPJsNDIXA
IGNATIUS, M (2020). Effect Of Corporate Governance On The Performance Of Insurance Companies In Nigeria.. Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-corporate-governance-on-the-performance-of-insurance-companies-in-nigeria
MOUAU/ACC/14/24513, IGNATIUS. "Effect Of Corporate Governance On The Performance Of Insurance Companies In Nigeria." Mouau.afribary.org. Mouau.afribary.org, 25 Jun. 2020, https://repository.mouau.edu.ng/work/view/effect-of-corporate-governance-on-the-performance-of-insurance-companies-in-nigeria. Accessed 30 Oct. 2024.
MOUAU/ACC/14/24513, IGNATIUS. "Effect Of Corporate Governance On The Performance Of Insurance Companies In Nigeria.". Mouau.afribary.org, Mouau.afribary.org, 25 Jun. 2020. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-corporate-governance-on-the-performance-of-insurance-companies-in-nigeria >.
MOUAU/ACC/14/24513, IGNATIUS. "Effect Of Corporate Governance On The Performance Of Insurance Companies In Nigeria." Mouau.afribary.org (2020). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-corporate-governance-on-the-performance-of-insurance-companies-in-nigeria