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Impact of the Corporate Governance on the Financial Performance of Insurance Companies in the Slovak and Czech Republics

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Advances in Cross-Section Data Methods in Applied Economic Research (ICOAE 2019)

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Abstract

Numerous expert studies have been conducted looking into the factors affecting the financial performance of businesses. Similarly, the issues of corporate governance and its individual determinants have been addressed in detail. The contribution of our paper is to link the aforementioned issues and their application specifically to companies providing insurance services whose products have a trust-based characteristic. Therefore, the control and management of insurance companies and their administration of entrusted resources are under strict control and are regulated by the Solvency II Directive in European Union law. The Czech and Slovak insurance markets have a common history. Currently, both markets are part of the European Union’s single insurance market. This research compares these two markets in terms of this sector development, financial performance and selected determinants of corporate governance in insurance companies. The aim of this paper is to examine the impact of corporate governance on the financial performance of insurance companies. Using correlation and multiple regression analysis, we modelled the impact of selected financial and non-financial determinants of corporate governance on the aggregate performance indicator ROA.

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Acknowledgements

This paper has been supported by the Scientific Grant Agency of Slovak Republic under project VEGA No. 1/0749/18 “Research on the application of corporate governance principles in companies in Slovakia”. The authors would like to express their gratitude to the Scientific Grant Agency of The Ministry of Education, Science, Research and Sport of the Slovak Republic for financial support of this research and publication.

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Authors and Affiliations

  1. Department of Finance and Accounting, Faculty of Ecomonics Matej Bel University in Banská Bystrica, Tajovského 10, Banská Bystrica, Slovakia

    Janka Grofčíková & Katarína Izáková

Authors
  1. Janka Grofčíková
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  2. Katarína Izáková
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Corresponding author

Correspondence to Janka Grofčíková .

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Editors and Affiliations

  1. Department of Economics, University of Western Macedonia, Kastoria, Greece

    Nicholas Tsounis

  2. Department of Economics, University of Western Macedonia, Kastoria, Greece

    Aspasia Vlachvei

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Grofčíková, J., Izáková, K. (2020). Impact of the Corporate Governance on the Financial Performance of Insurance Companies in the Slovak and Czech Republics. In: Tsounis, N., Vlachvei, A. (eds) Advances in Cross-Section Data Methods in Applied Economic Research. ICOAE 2019. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-38253-7_1

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