ISSN: 2225-8329
Open access
This study try is to examine the impact of Corporate Governance on Insurance Firm's performance in Palestine. CG was measured using board size, board meeting frequency, board committees, CEO status, and ownership structure. While return on assets (ROA) and return on equity (ROE) are used to measure the insurance sector performance. A quantitative technique, descriptive statistics, bivariate correlation where used, secondary data was obtained from the published annual reports of insurance firm's during the period 2007 - 2018. Pearson correlation and t-test are used to find whether there is a relationship between the CG variables and performance. Results indicated that board meeting frequency and CEO status have a significant impact on firm's performance, firm's that hold board meetings more frequently than others tend to achieve better performance in terms of both (ROA) and (ROE), firms in which the CEOs are also board members (CEO duality) generate higher performance than firms in which CEOs are independent from the board. Board size, board committees. Ownership structure has no significant impact on insurance firm's performance in Palestine. The researchers recommends: improving CG practices by imposing mandatory compliance with the code of CG, conducting further studies that take into consideration other sectors and variables that are not taken in this study.
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To cite this article: Shaheen, Y., Jaradat, N. (2019). Corporate Governance Impact on Insurance Firm's Performance. The Case of Palestine, International Journal of Academic Research in Accounting, Finance and Management Sciences 9 (3): 201-210
Copyright: © 2019 The Author(s)
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