REGULATORY STRINGENCY, CORPORATE GOVERNANCE AND FIRM PROFITABILITY: STATIC PANEL ANALYSIS OF INSURANCE COMPANIESIN NIGERIA USING RANDOM EFFECTS APPROACH

This study investigates the influence of corporate board characteristics on the profitability of listed insurance firms inNigeria, witha particular focus on the moderatingeffect ofregulatorystringency. Usingbalanced panel data covering10 firms from2014 to2023, the researchapplies a randomeffectsreg...

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Main Author: Adedeji Daniel Gbadebo
Format: Article
Language:English
Published: Department of Accounting and Finance, Federal University Gusau 2024-09-01
Series:Gusau Journal of Accounting and Finance
Subjects:
Online Access:https://www.journals.gujaf.com.ng/index.php/gujaf/article/view/446
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author Adedeji Daniel Gbadebo
author_facet Adedeji Daniel Gbadebo
author_sort Adedeji Daniel Gbadebo
collection DOAJ
description This study investigates the influence of corporate board characteristics on the profitability of listed insurance firms inNigeria, witha particular focus on the moderatingeffect ofregulatorystringency. Usingbalanced panel data covering10 firms from2014 to2023, the researchapplies a randomeffectsregression model to explore the relationshipsamong board size, board composition, gender diversity, meeting frequency, and financial expertise in relation to return on assets (ROA). The analysis also incorporates firm-specific controls and regulatory stringency indices to examine conditional effects. Descriptive statistics reveal moderate variability across governance attributes, while correlationand multicollinearitydiagnostics confirmstatistical validity. The results indicate that board gender diversity and financial expertise significantly influence firm profitability, with regulatory stringency negatively moderating the relationship. Findings align with agency and resource dependence theories,emphasizingthedualroleofgovernance qualityand externalinstitutionalconstraints.This research contributes to the evolving discourse on corporate governance in emerging markets by offering evidence-based insights into board dynamics under varying regulatory intensities. The study recommends targeted reforms to improve board capacity while recognizing the need for adaptive regulatory frameworks that support firm performance.
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institution Kabale University
issn 2756-665X
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language English
publishDate 2024-09-01
publisher Department of Accounting and Finance, Federal University Gusau
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spelling doaj-art-334eceec04f24ba5b77fa66cd1c4f2ce2025-08-25T05:07:01ZengDepartment of Accounting and Finance, Federal University GusauGusau Journal of Accounting and Finance2756-665X2756-68972024-09-015110.57233/gujaf.v5i1.26REGULATORY STRINGENCY, CORPORATE GOVERNANCE AND FIRM PROFITABILITY: STATIC PANEL ANALYSIS OF INSURANCE COMPANIESIN NIGERIA USING RANDOM EFFECTS APPROACHAdedeji Daniel Gbadebo 0Department of Accounting Science, Walter Sisulu University Mthatha, South Africa. This study investigates the influence of corporate board characteristics on the profitability of listed insurance firms inNigeria, witha particular focus on the moderatingeffect ofregulatorystringency. Usingbalanced panel data covering10 firms from2014 to2023, the researchapplies a randomeffectsregression model to explore the relationshipsamong board size, board composition, gender diversity, meeting frequency, and financial expertise in relation to return on assets (ROA). The analysis also incorporates firm-specific controls and regulatory stringency indices to examine conditional effects. Descriptive statistics reveal moderate variability across governance attributes, while correlationand multicollinearitydiagnostics confirmstatistical validity. The results indicate that board gender diversity and financial expertise significantly influence firm profitability, with regulatory stringency negatively moderating the relationship. Findings align with agency and resource dependence theories,emphasizingthedualroleofgovernance qualityand externalinstitutionalconstraints.This research contributes to the evolving discourse on corporate governance in emerging markets by offering evidence-based insights into board dynamics under varying regulatory intensities. The study recommends targeted reforms to improve board capacity while recognizing the need for adaptive regulatory frameworks that support firm performance. https://www.journals.gujaf.com.ng/index.php/gujaf/article/view/446Corporate GovernanceBoard CharacteristicsInsurance FirmsRegulatory StringencyProfitabilityNigeria
spellingShingle Adedeji Daniel Gbadebo
REGULATORY STRINGENCY, CORPORATE GOVERNANCE AND FIRM PROFITABILITY: STATIC PANEL ANALYSIS OF INSURANCE COMPANIESIN NIGERIA USING RANDOM EFFECTS APPROACH
Gusau Journal of Accounting and Finance
Corporate Governance
Board Characteristics
Insurance Firms
Regulatory Stringency
Profitability
Nigeria
title REGULATORY STRINGENCY, CORPORATE GOVERNANCE AND FIRM PROFITABILITY: STATIC PANEL ANALYSIS OF INSURANCE COMPANIESIN NIGERIA USING RANDOM EFFECTS APPROACH
title_full REGULATORY STRINGENCY, CORPORATE GOVERNANCE AND FIRM PROFITABILITY: STATIC PANEL ANALYSIS OF INSURANCE COMPANIESIN NIGERIA USING RANDOM EFFECTS APPROACH
title_fullStr REGULATORY STRINGENCY, CORPORATE GOVERNANCE AND FIRM PROFITABILITY: STATIC PANEL ANALYSIS OF INSURANCE COMPANIESIN NIGERIA USING RANDOM EFFECTS APPROACH
title_full_unstemmed REGULATORY STRINGENCY, CORPORATE GOVERNANCE AND FIRM PROFITABILITY: STATIC PANEL ANALYSIS OF INSURANCE COMPANIESIN NIGERIA USING RANDOM EFFECTS APPROACH
title_short REGULATORY STRINGENCY, CORPORATE GOVERNANCE AND FIRM PROFITABILITY: STATIC PANEL ANALYSIS OF INSURANCE COMPANIESIN NIGERIA USING RANDOM EFFECTS APPROACH
title_sort regulatory stringency corporate governance and firm profitability static panel analysis of insurance companiesin nigeria using random effects approach
topic Corporate Governance
Board Characteristics
Insurance Firms
Regulatory Stringency
Profitability
Nigeria
url https://www.journals.gujaf.com.ng/index.php/gujaf/article/view/446
work_keys_str_mv AT adedejidanielgbadebo regulatorystringencycorporategovernanceandfirmprofitabilitystaticpanelanalysisofinsurancecompaniesinnigeriausingrandomeffectsapproach