Corporate Governance, Board Oversight, and Firm Value: Evidence from Listed Insurance Companies in Nigeria (International Review of Management and Marketing)

Summary

• The study examines secondary data from 21 listed insurance companies in Nigeria over the period 2012 to 2021, yielding 210 firm-year observations.p.1
• The market-to-book value ratio across the sampled companies averaged 1.269, with a minimum of 1.017 and a maximum of 1.752.p.5
• Market-to-net book value experienced a persistent decline from 1.562 in 2012 to 1.017 in 2015 before rebounding to 1.752 in 2020.p.5
• Regression results show that overall board oversight functions have a positive relationship with firm value, with a coefficient of 0.821.p.7

Key insights

1. Audit committee and remuneration governance functions demonstrated positive and statistically significant relationships with firm value.p.1
2. Risk management functions exhibited a negative and statistically significant relationship with firm value.p.1
3. The market-to-net book value declined persistently from 1.562 in 2012 to 1.017 in 2015, reflecting weakened market confidence during that window.p.5
4. Overall board oversight functions peaked in 2016, whereas their lowest performance was recorded in 2018.p.6
5. The remuneration governance committee function performed its duties best in 2016 and worst in 2012.p.6
6. Listed insurance companies experienced a persistent increase in firm value measured by Tobin's Q from 2016 to 2020.p.6
7. Audit committee execution was most effective in 2016 and least effective in 2012.p.6
8. The risk management committee recorded its highest level of function discharge in 2017 and its lowest in 2013.p.6