What is it about?
This study aims to examine the impact of internal corporate governance mechanisms on insurance companies’ risk-taking in the UK context. The study uses a panel data of all listed insurance companies on FTSE 350 over the 2005-2014 period. Multivariate regression techniques are used to estimate the effect of internal corporate governance mechanisms on insurance companies’ risk-taking.
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Why is it important?
This study contributes to the corporate governance literature and creates significant evidence regarding the role of corporate governance in constraining risk-taking behaviour in an industry with significantly complex context.
Perspectives
The results show that the board size and board meetings are significantly and negatively related to risk-taking. In contrast, the results show that board independence and audit committee size are statistically insignificant but negatively related to risk-taking. The findings are robust to alternative measures and endogeneities.
Dr Ahmed A. Elamer
Brunel University
Read the Original
This page is a summary of: The corporate governance–risk-taking nexus: evidence from insurance companies, International Journal of Ethics and Systems, November 2018, Emerald,
DOI: 10.1108/ijoes-07-2018-0103.
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