8.CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE EVIDENCE FROM LISTED INSURANCE COMPANIES IN NIGERIA

This study examined the effect of corporate governance on financial performance of listed insurance companies in Nigeria.  Corporate governance practices were proxied by board gender diversity, board independence, board meeting and firm size while financial performance was measured using Return on Asset (ROA) and Return on Equity (ROE). The population of the study consists of 23 insurance companies in Nigeria. Judgmental sampling techniques was adopted to select 19 listed insurance companies in Nigeria. Secondary data were obtained from audited annual financial reports of listed insurance firms from 2013-2023. This study adopted ex-post factor research design. Panel data analysis technique was used to test the hypotheses. The study found that board gender diversity positively influences financial performance of insurance firms, showing a statistically significant effect on Return on Equity (ROE) but an insignificant effect on Return on Assets (ROA). Board independence, on the other hand, exhibited a statistically significant negative effect on ROA and an insignificant effect on ROE, suggesting that excessive independence may hinder operational efficiency. Lastly, board meeting frequency showed insignificant effect on both ROE, and ROA, indicating that meeting frequency alone may not drive financial performance. This study recommends that insurance firms aiming to enhance financial performance and ensure fair returns to equity holders should implement a policy mandating up to 50% female representation on their boards, as increased gender diversity fosters stronger governance outcomes and turns out to improve financial performance. Additionally, a balanced composition of executive and non-executive directors is advised to deepen operational insight and drive cost efficiency, thereby improving ROA. To sustain an optimal ROE, listed insurance firms in Nigeria should also maintain a moderate proportion of independent directors, as excessive independence may inadvertently reduce equity returns. Finally, boards are encouraged to comply with the regulatory minimum of four meetings annually, as stipulated by the Nigerian Code of Corporate Governance, to uphold effective oversight without incurring unnecessary governance costs.