An empirical investigation of corporate governance attributes and firm performance: evidence from the ethiopian insurance industry

This study investigates the relationship between CG attributes and the financial performance of Ethiopian insurance companies. This study used quantitative methodologies and an explanatory research design. The study used a panel data approach with 17 insurance companies, and the timeline for the study was 2015/16–2022/23. The secondary data were obtained from various sources, including yearly reports, the National Bank of Ethiopia, published reports, and pertinent websites. This study employs regression techniques, particularly the fixed effects model and random effects model. This study revealed that board size positively correlates with the financial performance of Ethiopian insurance companies (ROA). This finding shows that a larger board size improves insurance financial performance (ROA) more effectively and efficiently. However, a negative association exists between the size of the board of directors and insurance financial performance (ROE). Nonexecutive board members negatively impact financial performance; this may be due to a lack of industry knowledge and prioritizing interests over shareholders. Audit committees significantly improve financial performance, whereas board meetings and board gender diversity do not significantly impact financial performance. However, CEO dualism has a detrimental effect on the financial performance of insurance companies. The study also revealed no significant association between the financial success of government-owned and privately held insurance companies. This study provides useful insights for academics and policymakers (including the National Bank of Ethiopia, insurance companies, and other corporations).