The Impact of Board Characteristics and CEO Duality on the Profitability of Listed Insurance Companies in Nigeria

Abstract

Purpose

This study examines how key corporate governance mechanisms—board size, board independence, board gender diversity, CEO duality, and board meeting frequency—affect the asset returns of listed insurance firms in Nigeria. It addresses a significant gap in the literature by focusing on market-based performance indicators rather than traditional accounting measures.

Methodology

Grounded in agency, stewardship, and resource-dependence theories, the study employs panel regression techniques using data from Nigerian listed insurance companies. The analysis explores whether internal governance structures influence investor-driven outcomes reflected in asset returns.

Findings

Board size, board independence, and meeting frequency significantly enhance asset returns, underscoring the importance of monitoring efficiency and active board engagement. CEO duality exhibits mixed effects, reflecting the theoretical tension between unified leadership and agency risks. Board gender diversity shows no significant impact, suggesting institutional or structural limitations in the Nigerian insurance context.

Conclusion

The results highlight the need for governance reforms that strengthen board independence, improve board engagement, and promote meaningful female representation. Regulators and investors may use these insights to strengthen governance quality and financial resilience.