Corporate Governance Structure and Insurance Companies’ Performance in Ghana

Abstract

The study seeks to explore the relationship between internal corporate governance structures and the performance of insurance companies. Adopting a descriptive study approach, a random sampling technique was used to select a sample size of 200, comprising 150 customers and 50 staff from the five insurance companies within the Kumasi Metropolis for them to respond to structured questionnaires. The study found out that corporate governance is essential in every corporate body, ensuring smooth operations of the firms and also ensures transparency of the day to day activities of the firms in order to build up confidence in stakeholders of the firms. However, firms tend to be affected mainly by the interference of government decision and the abrupt change in direction of the firms when there is a change in government. It is therefore recommended that, the firms adopt fair practices that would ensure that the corporate governance framework would protect and facilitate the exercise of shareholders' rights. It is also recommended that the BOD should ensure the provision of strategic guidance of the firm, effective monitoring of management, and the board’s accountability to the firm and the shareholders so as to improve its performance.

Keywords: Corporate Governance Structure, Corporate Governance, Insurance Companies, Ghana.