Corporate governance mechanisms and efficiency of insurance firms: evidence from an emerging market

The paper assessed linkage amongst governance mechanisms and efficiency of insurers in Kenya over 8 year period from 2013 to 2020. study estimated the using DEA approach light previous literature during first stage. During second stage, bias-corrected scores were regressed against corporate (CG) proxies control variables SW (2007) on a sample 53 insurers. Using this two-stage, bootstrapping approach, documents that Kenyan are technically inefficient. Overall, presents evidence showing CG influence technical Kenya. Precisely, board independence, gender diversity audit quality positively significantly impact insurers’ efficiency. Further, finds size negatively affect However, established insignificant relationship between CEO duality, intensity activities makes contribution bourgeoning reservoir empirical works CG-efficiency nexus an emerging market perspective. Particularly, article offers insights some least studied such as diversity, activities. research outcomes also have practical implications for regulators, academia, insurers, government policy makers, practitioners, shareholders consumers insurance products by raising their awareness This is especially beneficial countries pursuing reforms.