MEASURING IMPACT OF CORPORATE GOVERNANCE ON THE PERFORMANCE OF THE NIGERIAN INSURANCE COMPANY

This study examines the impact of corporate governance on the performance of the Nigerian insurance company. It examines the relationship that exists between corporate governance and performance in the insurance company. Two Corporate Governance (CG) mechanisms (board size, board composition) and one insurance performance measure; return on equity (ROE) was used as the independent and dependent variables of three sampled Nigerian listed insurance firms between 2002 and 2008. Two hypotheses were formulated. The sampling technique adopted is the Simple Random Sampling; that is, all the companies were given equal chance to be chosen. Data was administered through the financial statements, annual reports and the journals present and information was extracted from these already prepared reports and journals. The technique for data analysis employed for this study is multiple regression analysis. Using OLS as a method of estimation, the results however could not provide significant impact of the two CG mechanisms (board size, board composition) on ROE. The result also show no significant evidence to support the idea that board size, and board composition help promote insurance firm performance in Nigeria. The study recommends that board size should not b