Impact of Corporate Governance on Financial Performance of Selected Insurance Companies in India
DOI:
https://doi.org/10.32628/CSEIT2390449Keywords:
Corporate Governance, Financial Performance, Insurance, CEO Duality, Return on Investment.Abstract
Corporate Governance is the coalescence of rules, laws, processes by which businesses are regulated, operated and controlled. In-essence, corporate governance entails stabilizing the interests of the stakeholders of a company, such as investors, customers, employees, suppliers, communities, governments, or trade associations and the society as a whole. The rudimentary principles of corporate governance are accountability, transparency, fairness, and responsibility. In this study, we have tried to analyze the impact of corporate governance on the financial performance of the Indian insurance industry. For this purpose, a sample of 10 insurance companies has been selected among 56 insurance companies operating in India as per IRDA Annual Report (2021-22) from the accounting year 2018-19 to 2022-23 (5 years) using Purposive Sampling method. This study is fully based on secondary data, derived from annual reports, public disclosures, financial statements of IRDA and selected insurance companies. For analyzing the data, we have used correlation and multiple regression techniques. This study found that Board Mix and Independent Directors are positively and Female Board Members and CEO Duality are negatively associated with the financial performance of the Indian insurance industry.
References
- Ahmad, N. and Iqbal, N. & Tariq, M.S.(2014). “Relation of Corporate Governance with Financial Performance”. International Letters of Social and Humanistic Sciences, Vol. 40, pp 35-40.
- Baghat, S., & Black, B. (2000). Board independence and long-term firm performance. Columbia Law School, Law and Economics Working Paper.
- Bennedsen, M., Kongsted, H. C., & Nielsen, K. M. (2008). The causal effect of board size in the performance of small and medium-sized firms. Journal of Banking & Finance, 32(6), 1098-1109.
- Brickley, J. A., Coles, J. L., & Jarrell, G. (1997). Leadership structure: Separating the CEO and chairman of the board. Journal of corporate Finance, 3(3), 189-220.
- Chen, C. J., Lin, B. W., Lin, Y. H., & Hsiao, Y. C. (2016). Ownership structure, independent board members and innovation performance: A contingency perspective. Journal of Business Research, 69(9), 3371-3379.
- Jaiswal D & Mandal B (2021) ― “Impact of Corporate Governance on Firm Financial Performance: A Study based on Indian Pharmaceuticals Companies”.The Contemporary Issues in Economics, Business and Accounting, 11-22.RED'SHINE Publication Pvt. Ltd, India In association with, RED’MAC INTERNATIONAL PRESS & MEDIA. INC India | Sweden | UK. Kala Sarovar ISSN: 0975-4520. (UGC Care Group-I Journal) Vol-24 No. 03 July-September 2021.
- Malik, M., Wan, D., Ahmad, M. I., Naseem, M. A., & Rehman, R. U. (2014). Role of board size in corporate governance and firm performance applying Pareto approach, is it cultural phenomena?. Journal of Applied Business Research (JABR), (5), 1395-1406.
- Moscu, R. G. (2013). Does CEO duality really affect corporate performance? International journal of academic research in economics and management sciences, 2(1), 156.
- Puthenpurackal, J., & Upadhyay, A. (2013). Board gender diversity and firm performance: The impact of information environment. Bath: University of Bath. Retrieved from http://www. bath. ac. uk/management/news_events/events/corp-2013/pdf/PuthenpurackalJohn. pdf. Accessed on June, 26, 2013.
- Smith, N., Smith, V., & Verner, M. (2006). Do women in top management affect firm performance? A panel study of 2,500 Danish firms. International Journal of productivity and Performance management, 55(7), 569-593.
Downloads
Published
Issue
Section
License
Copyright (c) IJSRCSEIT
This work is licensed under a Creative Commons Attribution 4.0 International License.