Impact of Corporate Governance Practices on Financial Performance of Selected Insurance Companies in Ethiopia

Abstract

This study investigates the impact of corporate governance practices on financial performance of selected insurance companies in Ethiopia using ten years data from the year 2005 to 2014. The study employed explanatory research design. The target population of this study was all insurance companies registered by NBE. However for the purpose of this study, the researcher purposively selected nine insurance companies based on their age criteria. ROA is used as performance indicators while independent variables considered in this study includes board size, frequency of board meeting, number of female director’s in the board, board members educational qualification, board members industry specific experience and CEO payment. In line with the study objective; the study adopted a mixed data type both quantitative and qualitative through primary and secondary data source. Descriptive, correlation and multiple panel linear regression data analysis methods are employed. The study found that there are positive relationships between board size, number of female directors, chief executive payment, board member industry specific experience and board of director’s qualification and company performance. ` Keywords: Corporate Governance, Financial Performance and Insurance Companies