“Soft” Governance and Firm Performance: A Study of Ghanaian Insurance Firms

Abstract

The purpose of this research is to investigate the relationship between “soft” governance factors and the performance of insurance companies in Ghana. The study employed panel data methodology for the regression analysis of “soft” governance factors and the performance of the companies for the period 2005 – 2009. The results show that “soft” governance factors of recruitment policy, staff training and development, communication policy and performance evaluation have statistically significant positive relationship with the performance of the companies. It is recommended that management should treat “soft” governance as a strategic issue and formulate strategic policies on these factors. Again they should ensure the full implementation of these policies to ensure that the companies derive the maximum benefit of an improved performance.

Keywords: “Soft” governance, Insurance industry, Firm performance