Corporate Governance, Board Oversight, and Firm Value: Evidence from Listed Insurance Companies in Nigeria

Abstract

Effective board oversight is essential for corporate governance, accountability, and the sustainable value of firms. This study examines how board oversight functions relate to firm value and how this relationship has evolved among listed insurance companies in Nigeria. An ex post facto research design was employed, utilising secondary data from the annual reports and financial statements of 21 listed insurance companies from 2012 to 2021, resulting in 210 firm-year observations. Board oversight was assessed through audit committee, risk management, and remuneration governance functions, while firm value was measured using Market-to-Net Book Value (MNBV) and Tobin’s Q. Descriptive statistics, trend analysis, diagnostic tests, and regression analysis were conducted. The results show that firm value changed considerably throughout the period examined. Audit committee and remuneration governance functions demonstrated positive and statistically significant relationships with firm value, whereas risk management functions exhibited a negative and statistically significant relationship. These results suggest that strengthening board oversight mechanisms may improve, particularly risk management practices, to improve governance effectiveness and support sustainable firm value in Nigeria’s insurance industry.