The Effect Of Corporate Governance Practices On Financial Performance Of Listed Insurance Companies In Nigeria.

Abstract

Corporate governance is an important mechanism for the efficient running of an organisation. Sub-optimal performances, large scale misappropriation of fund, management inconsistence and the attendant corporate failures have amplified considerable interest in corporate governance. This study investigates the relationship between corporate governance practices and financial performance of listed insurance companies in Nigeria. Specifically, the study determines corporate governance variables on Return on Asset (ROA), Return on Equity (ROE) and Tobin’s Q (TQ) of the listed insurance companies in Nigeria. The result shows that the profit of the listed insurance companies fluctuated over the period under consideration using return on asset (ROA) and Return on Equity (ROE) as basis. It was further discovered that corporate governance measures jointly have positive and significant relationship with financial performance. The study therefore concludes that corporate governance practices significantly affect the financial performance of listed insurance companies in Nigeria.