| International Journal of Business and Economics Volume 24, No. 1 June, 2025 |
| Corporate Governance and Corporate Performance Nexus: Evidence from Ghana’s Insurance Sector |
| Musah Mohammed Saeed |
| Department of Management, Paari School of Business (PSB), SRM University-AP, Andhra Pradesh, India |
| Obeng Hollack |
| Faculty of Business and Applied Sciences, Garden City University College (GCUC), Kenyase, Ghana |
| Newman Amaning |
| Department of Accountancy, Sunyani Technical University (STU), Sunyani, Ghana |
| Shahin Sultana Mohammed |
| Department of Management, Paari School of Business (PSB), SRM University-AP, Andhra Pradesh, India |
| Abstract |
| The insurance industry is a vital pillar of Ghana’s economy, providing financial security, risk management, and investment opportunities. Corporate governance plays a crucial role in determining the performance and sustainability of insurance companies, influencing decision-making, operational efficiency, and overall financial health. Effective governance structures ensure transparency, accountability, and strategic oversight, which are essential for fostering investor confidence and industry growth. This study examines the impact of corporate governance practices on the performance of insurance companies in Ghana, focusing on three key factors: board size, board independence, and CEO duality. Using the Ordinary Least Squares (OLS) regression technique, this study analyzes panel data from 20 insurance firms spanning the period from 2011-2020, sourced from National Insurance Commission (NIC) reports, to provide empirical insights into governance dynamics within the industry. The findings reveal that board size significantly impacts corporate performance, while board independence and CEO duality have minimal effects. Additionally, the study highlights the crucial role of board composition in enhancing return on assets (ROA), a key measure of financial performance. The results suggest that having an optimally structured board can improve decision-making processes, enhance managerial oversight, and ultimately drive company profitability. These insights are particularly valuable for policymakers, regulatory authorities, and industry stakeholders aiming to refine corporate governance frameworks to foster sustainable growth in the insurance sector. These insights are valuable for policymakers, regulators, and industry stakeholders seeking to refine governance frameworks for sustainable growth. Given the notable impact of board size, regulatory bodies like the NIC should establish guidelines to optimize board composition, balancing efficiency and oversight. Strengthened governance policies will enhance investor confidence, promote corporate accountability, and contribute to Ghana’s economic development. |
| Keywords：Corporate Governance, Corporate Performance, Ghana's Insurance Industry, Panel Data, Agency Theory |
| JEL Classifications：M, M4, M41, M410 |
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