Corporate Physiognomies and Profitability of Quoted Insurance Companies Evidence from Emerging Markets
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Abstract
This study investigates the effect of corporate physiognomies on profitability of quoted insurance companies-evidence from the emerging market (Nigeria) for the period of ten years (2012 to 2021). The population of the study consist of 28 listed insurance firms as at 31st December, 2021 out of which twenty-one (21) quoted insurance firms were employed as a sample using filter sampling technique. Secondary data was employed by using the annual reports and accounts of the selected firms. The study employs ex-post facto as the research design for the study with pooled panel data. Multiple regression techniques were employed as techniques for data analysis to test the hypotheses of the study. The findings of the study revealed that all the explanatory variables (corporate size, leverage, liquidity, corporate age and underwriting risk) have statistical significant impact on the profitability of quoted insurance companies in Nigeria. Therefore, it is recommended among others that management should strictly consider the return that could be generated from the usage of assets, ensure a consistent liquidity sufficiency, maintain a stable long-range solvency ratio, ensure a reasonable but consistent balance between the benefits paid and the quantum of net premium while justifying their corporate existence/participation and recognition in the insurance industry and the stock exchange respectively. Indeed, management of quoted insurance companies should strive at increasing their capacity to generate borrowings and other forms of deposits as this will empirically increase the profitability (ROA) of the quoted insurance companies in Nigeria.
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