THE INFLUENCE OF CORPORATE GOVERNANCE ON ORGANIZATIONAL PROFITABILITY
THE INFLUENCE OF CORPORATE GOVERNANCE ON ORGANIZATIONAL PROFITABILITY

Summary/Abstract: The objective of the study was to investigate the effect of CEO duality, board independence, board transparency and board activity intensity respectively on organizational profitability of AIICO Insurance Plc. Data were collected by random sampling technique. 169 questionnaires were administered to employees of AIICO insurance Plc in Lagos through the close-ended structured questionnaires, 157 were correctly attended to while 12 were defective. The data were analyzed using frequency distribution tables and percentages, while Pearson’s’ product moment correlation was used to test the hypotheses. This study concluded that corporate governance is no longer a new concept worldwide but a norm of corporate behavior and performance expectations, and Nigeria cannot differ in ensuring compliance. As well, the study recommended that, to ensure adherence to corporate governance principles, the management of AIICO insurance should take the issue of board independence, transparency, accountability and disclosure more seriously. In addition, it was suggested that the management of AIICO insurance should have a small but qualitative board size that is made up of financial and legal professionals.

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