Impact of corporate governance on firm performance

Abstract

This study examines how ethical conduct and company-specific factors impact underwriterfinancial outcomes utilising Return on Equity (ROE) and Return on Assets (ROA) asachievement metrics. While company size, age, and its capital to debt ratio (DER) werebusiness-specific factors, the percentage of independent boards and CEO duality werecontrolling factors. Experiential and quantitative approaches have been used in the researchto accomplish the specific goal of this study. Three companies in Nepal provided surveydata for the investigation between 2014–15 and 2023–2024. Supplementary information02was utilized in the study for this analysis. One of the most important methods for evaluatinggrouping information is ordinary least square regression (OLS). Correlational studyindicates a positive relationship amongst board impartiality and the dual function of CEOand ROA, whereas DER and firm size have contradictory relationships with successmeasures. The outcomes of regression demonstrate the need of board oversight,demonstrating that unattended committees significantly raise ROA and ROE. Furthermore,DER has a significant positive effect on ROE, suggesting that its application increasesprofitability. Committee participation, bosses, firm size, and age are other factors that dont significantly impact accomplishment. In conclusion, the findings demonstrate howcritical it is for insurers to increase their revenue utilizing firm-specific strategies and strongregulatory structures.