Corporate Governance Practices and Future Direction In the case of Ethio Life and General Insurance Share Company
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Date
2024-05-04
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A.A.U
Abstract
This study looked at how crucial corporate governance is for giving stakeholders and investors a
clear picture of the direction and morality of a corporation. The study's specific goal was to
evaluate how corporate governance techniques and principles were being applied in Ethio Life
and General Insurance, a corporate entity (ELiG). In order to analyze and interpret the results,
the study used a mixed technique that combined the use of qualitative and quantitative data in a
descriptive research design. Primary data was gathered from the board of directors,
management team, and branch managers of ELiG via questionnaires and interviews. 39
respondents in all were initially found; 38 of them filled out the questionnaires, and 13 members
of the management team—including the CEO and Deputy CEOs—participated in in-person
interviews. Excel was used to do a thematic analysis of the data. The analysis indicates that
ELiG has strong conformity to the corporate governance guidelines provided by the National
Bank of Ethiopia (NBE). The study suggests that ELiG create its own comprehensive Corporate
Governance guidebook in accordance with NBE's Insurance Corporate Governance Directives
No. 188/2020, based on the findings. It is thought that ELiG will gain a number of advantages
from the implementation of good corporate governance, such as increased investor confidence,
better access to capital, better risk management, talent attraction and retention, stakeholder
trust and reputation, regulatory compliance, and long-term sustainability.