EFFECT OF BOARD ATTRIBUTES ON FINANCIAL PERFORMANCE OF LISTED INSURANCE COMPANIES IN NIGERIA

The continuous failure of companies around the world as a result of adverse strategic decisions made by the board, which had consequently affected the financial strength of companies, has raised questions on the effectiveness of board of directors. Therefore, this study examined the effect of board...

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Main Authors: A. O Ajisafe, A. O Isiaka, W Lawal, K.A Babatunde
Format: Article
Language:English
Published: Kwara State University, Malete Nigeria 2023-11-01
Series:Malete Journal of Accounting and Finance
Subjects:
Online Access:https://majaf.com.ng/index.php/majaf/article/view/30
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author A. O Ajisafe
A. O Isiaka
W Lawal
K.A Babatunde
author_facet A. O Ajisafe
A. O Isiaka
W Lawal
K.A Babatunde
author_sort A. O Ajisafe
collection DOAJ
description The continuous failure of companies around the world as a result of adverse strategic decisions made by the board, which had consequently affected the financial strength of companies, has raised questions on the effectiveness of board of directors. Therefore, this study examined the effect of board attributes on financial performance of listed insurance companies in Nigeria. The population of the study consists of thirty-four (34) listed insurance companies on the Nigerian Stock Exchange as at 31st December 2018 while twenty-three companies were used as sample due to the incomplete annual reports of some insurance companies. Random-effect regression analysis was employed in analyzing the secondary data obtained from the annual reports of the sampled companies for the period 2013-2018. The study found that board remuneration has significant negative effect on financial performance of listed insurance companies in Nigeria at 95% confidence level (p-value of 0.031) while board gender diversity has significant positive effect (p-value of 0.002) on financial performance of listed insurance companies in Nigeria. Therefore, this study concluded that board attributes have significant effect on financial performance of listed insurance companies in Nigeria. The study recommends that women should be given more consideration in board composition.
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institution Kabale University
issn 2735-9603
language English
publishDate 2023-11-01
publisher Kwara State University, Malete Nigeria
record_format Article
series Malete Journal of Accounting and Finance
spelling doaj-art-7b5904ca05f147dfb587a6b9375c9a622025-02-10T23:06:31ZengKwara State University, Malete NigeriaMalete Journal of Accounting and Finance2735-96032023-11-0111EFFECT OF BOARD ATTRIBUTES ON FINANCIAL PERFORMANCE OF LISTED INSURANCE COMPANIES IN NIGERIAA. O Ajisafe0A. O Isiaka1W Lawal2K.A Babatunde3Kwara State PolytechnicKwara State College of Education, IlorinKwara State College of Education, IlorinKwara State College of Education, Ilorin The continuous failure of companies around the world as a result of adverse strategic decisions made by the board, which had consequently affected the financial strength of companies, has raised questions on the effectiveness of board of directors. Therefore, this study examined the effect of board attributes on financial performance of listed insurance companies in Nigeria. The population of the study consists of thirty-four (34) listed insurance companies on the Nigerian Stock Exchange as at 31st December 2018 while twenty-three companies were used as sample due to the incomplete annual reports of some insurance companies. Random-effect regression analysis was employed in analyzing the secondary data obtained from the annual reports of the sampled companies for the period 2013-2018. The study found that board remuneration has significant negative effect on financial performance of listed insurance companies in Nigeria at 95% confidence level (p-value of 0.031) while board gender diversity has significant positive effect (p-value of 0.002) on financial performance of listed insurance companies in Nigeria. Therefore, this study concluded that board attributes have significant effect on financial performance of listed insurance companies in Nigeria. The study recommends that women should be given more consideration in board composition. https://majaf.com.ng/index.php/majaf/article/view/30Corporate governanceFinancial performanceBoard gender diversityBoard remuneration
spellingShingle A. O Ajisafe
A. O Isiaka
W Lawal
K.A Babatunde
EFFECT OF BOARD ATTRIBUTES ON FINANCIAL PERFORMANCE OF LISTED INSURANCE COMPANIES IN NIGERIA
Malete Journal of Accounting and Finance
Corporate governance
Financial performance
Board gender diversity
Board remuneration
title EFFECT OF BOARD ATTRIBUTES ON FINANCIAL PERFORMANCE OF LISTED INSURANCE COMPANIES IN NIGERIA
title_full EFFECT OF BOARD ATTRIBUTES ON FINANCIAL PERFORMANCE OF LISTED INSURANCE COMPANIES IN NIGERIA
title_fullStr EFFECT OF BOARD ATTRIBUTES ON FINANCIAL PERFORMANCE OF LISTED INSURANCE COMPANIES IN NIGERIA
title_full_unstemmed EFFECT OF BOARD ATTRIBUTES ON FINANCIAL PERFORMANCE OF LISTED INSURANCE COMPANIES IN NIGERIA
title_short EFFECT OF BOARD ATTRIBUTES ON FINANCIAL PERFORMANCE OF LISTED INSURANCE COMPANIES IN NIGERIA
title_sort effect of board attributes on financial performance of listed insurance companies in nigeria
topic Corporate governance
Financial performance
Board gender diversity
Board remuneration
url https://majaf.com.ng/index.php/majaf/article/view/30
work_keys_str_mv AT aoajisafe effectofboardattributesonfinancialperformanceoflistedinsurancecompaniesinnigeria
AT aoisiaka effectofboardattributesonfinancialperformanceoflistedinsurancecompaniesinnigeria
AT wlawal effectofboardattributesonfinancialperformanceoflistedinsurancecompaniesinnigeria
AT kababatunde effectofboardattributesonfinancialperformanceoflistedinsurancecompaniesinnigeria