CORPORATE GOVERNANCEMECHANISMS AND MARKET-BASED PERFORMANCE OF INSURANCE SERVICE PROVIDERS IN NIGERIA

Isaac Oladepo ONIGBINDE

Abstract


This study assessed the influence of corporate governance mechanisms on the
market-based performance of selected insurance companies in Nigeria using capital adequacy and shareholding/ownership structure as proxies for corporate
governance mechanisms andaggregate corporate performance as proxy for marketbased performance. Two hundred and eighty-six (286) senior employees of ten (10) leading insurance companies in Nigeria were proportionally selected and administered questionnaire via purposive sampling and process of randomization. All the selected insurance companies were listed on the Nigerian Stock Exchange. Two hypotheses were postulated to guide the study. Data collected were analyzed using Pearson Product Moment correlation. The results revealed that there is a significant relationship between capital adequacy and market-based performance on one hand; and shareholding/ownership structure and market-based performance on the other hand at .025 level of significance. The study concluded that capital adequacy and shareholding/ownership structure of corporate governance have positive influence on market-based performance of organizations.It was recommendedthat the managements of insurance companies should establish strategic framework for enthronement of strict corporate governance in their respective organizations, while upholding high ethical standards and best practices in their respective spheres of operations.


Keywords


capital adequacy, corporate governance mechanisms, insurance service providers, market-based performance, shareholding/ownership structure.

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International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

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