The Relationship Between Corporate Governance and Financial Performance of Insurance Companies in Kenya
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Date
2011-11Author
Kimosop, Kipkurui
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The study investigates into the relationship between corporate governance and financial
performance of insurance companies. Corporate governance has been believed to be one of
the factors that influence the financial performance of insurance companies.
The study comprised of 41 insurance companies licensed by IRA during the period of study
2006 to 2009. The study found out that there is a significant influence of board size, nonexecutive
directorships, insider shareholding, board meeting frequency and CEO-Chairman
duality on the financial performance of the insurance companies.
The study found out that there is a negative relationship between the Board size and nonexecutive
directorships with ROA whereas Insider shareholding and board meeting frequency
had a significant positive relationship with ROA. On the other hand, board size, nonexecutive
directorships, insider shareholding and board meeting frequency had a positive
relationship with ROE.
The study recommends that the regulator should draw minimal requirements for corporate
governance in the insurance industry to serve as guideline for the insurance firms; this will
improve the financial performance of these firms.
Publisher
University of Nairobi