Impact of Corporate Governance on Financial Performance of Selected Insurance Companies in India

Corporate Governance is the coalescence of rules, laws, processes by which businesses are regulated, operated and controlled. In-essence, corporate governance entails stabilizing the interests of the stakeholders of a company, such as investors, customers, employees, suppliers, communities, governments, or trade associations and the society as a whole. The rudimentary principles of corporate governance are accountability, transparency, fairness, and responsibility. In this study, we have tried to analyze the impact of corporate governance on the financial performance of the Indian insurance industry. For this purpose, a sample of 10 insurance companies has been selected among 56 insurance companies operating in India as per IRDA Annual Report (2021-22) from the accounting year 2018-19 to 2022-23 (5 years) using Purposive Sampling method. This study is fully based on secondary data, derived from annual reports, public disclosures, financial statements of IRDA and selected insurance companies. For analyzing the data, we have used correlation and multiple regression techniques. This study found that Board Mix and Independent Directors are positively and Female Board Members and CEO Duality are negatively associated with the financial performance of the Indian insurance industry.