EFFECT OF CORPORATE GOVERNANCE ATTRIBUTES AND VALUE OF LISTED INSURANCE COMPANIES IN NIGERIA

Abstract

This study investigated the effect of corporate governance attributes on the firm value of listed insurance companies in Nigeria. The governance variables examined included board size, board composition, foreign directorship, and financial expertise, with firm value as the dependent variable. Using an ex post facto research design, the study sampled 10 firms from a population of 20 insurance companies through purposive sampling. Regression analysis revealed that board size and board composition had positive and negative relationships with firm value, respectively, but neither was statistically significant. Foreign directorship showed a significant negative impact, suggesting that foreign board members may have hindered firm performance, possibly due to cultural or contextual misalignments. Conversely, financial expertise on the board had a strong, significant positive effect on firm value, underscoring the importance of financial acumen in corporate oversight. The model explained 22.4% of the variation in firm value and was statistically significant overall, confirming the role of governance quality in shaping firm outcomes in Nigeria's insurance sector. The study recommended prioritizing the appointment of financially skilled directors, enhancing the integration of foreign directors, and focusing on board quality over size or independence to strengthen firm value.

Keywords: Board size, Board composition, Foreign directorship, and Financial expertise