MEDIATING ROLE OF CAPITAL STRUCTURE BETWEEN CORPORATE GOVERNANCE AND CORPORATE PERFORMANCE IN NIGERIA

Abstract

Insurance companies are a vital part of the financial sector. This study examines the impact of corporate governance and capital structure on the financial performance of Nigerian insurance companies using secondary data from 2016-2020. The sample includes 21 out of 29 insurance companies listed on the Nigerian Exchange Group (NEG).  Various statistical tests and models were employed to analyze the data. Findings show that while corporate governance practices positively impact financial performance, the relationship is not statistically significant. Conversely, capital structure significantly enhances financial performance. The study recommends strategies for implementing effective corporate governance and capital structure practices, emphasizing the importance of adhering to updated codes of corporate governance and fostering employee understanding of these practices to improve the financial performance of Nigerian insurance companies.