Abstract:
Corporate governance provides the structure through which the objectives of
the company are set, and the means of achieving those objectives and
monitoring performance are determined. The purpose of this study was to
investigate the relationship between corporate governance mechanisms and
financial performance of Insurance Company’s in Ethiopia. From the total of
17 Insurance which are operating in the country, eight Insurance Companies
have been selected for the study by way of a purposive sampling. The study
use ROA as dependent variables and Whereas, independent variables like
(board size, board meeting frequency, board gender diversity, board
experience in finance sector, board educational qualification and audit
committee size, ) have been used . To achieve this objective descriptive and
explanatory type of research design with a mixed approach, more of
quantitative, was employed .Primary data was collected using structured
questionnaires completed by the CEOs as they were in a better position to
comment on corporate governance affairs. Secondary data was collected from
the NBE. The study utilized panel data analysis methodology in drawing
conclusions about the study. The findings of the study shows that board size ,
board gender diversity and audit committee size had negative and significant
impact on the performance of Insurance Company’s in Ethiopia . On the other
hand, board meeting frequency,board experience in finance sector and board
educational qualification had a positive and significant effect on Insurance
Company’s.
