Corporate Governance and Firm Performance: Evidence from the Insurance Sector of Ghana

Abstract

The purpose of this study is to investigate the relationship between corporate governance and the financial performance of insurance companies in Ghana.  The secondary data was collected from the national insurance commission and the primary data through the administration of interview questionnaires. Panel Data Methodology was used for the data analysis. The findings shows that large board size, board skill, management skill, longer serving CEOs,  size of audit committee, audit committee independence, foreign ownership, institutional ownership, dividend policy and annual general meeting are positively associated with the financial performance of insurance companies in Ghana. The insurance companies are encouraged to adopt good corporate governance practices to improve their financial performance and also to protect the interest of the shareholders. Most importantly the regulatory authorities must ensure compliance with good governance and apply the appropriate sanctions for non compliance to help the growth and development of the insurance industry.

Key Words: Ghana insurance industry, Corporate governance, Firm performance