Impact of Gender Diversity, Board Size, Ownership Structure on the Financial Performance of Insurance Firms in Ghana: A Comparative Analysis of Public vs. State-Owned Firms

Abstract

The study investigates the correlation between corporate governance and financial performance in Ghanaian insurance companies through econometric and linear regression analysis. The chi-square independence test and odds and Odds ratio test were used to establish the degree of relationship between gender diversity, board size and ownership structure and financial performance- underwriting profit, return on equity and return on asset. The study reveals a relationship between corporate governance indicators and variables of insurance firm’s financial performance. Board size and composition were found to be statistically significant in the model. A decrease in board size and an increase in board composition will result in better performance. The study also revealed that there is an association between ownership type and performance. Publicly listed firms perform better than unlisted state-owned firms. The study concluded that board size will not matter once the board is efficient. The study made key recommendations.

Keywords: Corporate Governance, Financial Performance, Ownership Type, Gender Diversity, Board Size.

DOI: 10.7176/EJBM/16-7-02

Publication date: September 30th 2024