Assessment of Corporate Governance Practices in the Ethiopian Insurance Industry (The Case of Selected Four Insurance Companies)
No Thumbnail Available
Date
2018-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
It is the separation of ownership and control that produced the concept of corporate governance. Since governance is the centre point for corporate success, it needs the attention of all stakeholders. Unless given a focus it deserves in managing a business, it may result undesirable long term consequences. In the current business set up, Insurance Companies are among the industries that are implementing the concept of corporate governance in the context of Ethiopia. Due to the sensitivity nature of the business and an irreplaceable role these companies play in the macro economy of a given country, poor corporate governance practice may have a macroeconomic impact that could potentially affect the whole economy. As a result, this research paper was prepared with the objective of assessing and understanding the level of corporate governance practice in Insurance Companies in Ethiopia in light of National bank of Ethiopia‟s Directive and OECD principles, so as to improve the understanding of various stakeholders and also to shed light on the adoption of best practices and principles into the country‟s corporate governance system. Major components like board of directors, shareholders, Executive directors, supervisory organ and disclosure, were taken as major assessment concepts. A questionnaire prepared addressing these concepts were distributed and related documents were also reviewed. The data collected were analysed using SPSS application. The results show that, Insurance Companies in Ethiopia are in good corporate governance foundation because of the regulatory organ strict supervision on each and every action of the market. However, some important and critical manifestations of good corporate governance are lacking both from regulatory side and from the Companies side that would promote the practice some steps higher. This will have impact on the existing knowledge of the practice and further policy measures should be updated and enhanced.
Description
A Thesis submitted to college of business and economics in partial fulfilment of the requirements for the Masters Degree of Executive Masters of Business Administration
Keywords
Corporate Governance, Ethiopian Insurance Industry