Abstract:
The purpose of this study is to observe the impact of corporate governance on the
performance of insurance sector in Sri Lanka. The study utilized four Corporate
Governance (CG) variables as independent variables such as board size, percentage
of non-executive directors, percentage of independence non-executive directors and
institutional investor’s ownership. Return on Investments (ROI) occupied as the
dependent variable. The sample of the study consists with nine insurance companies
and data from period of 2010-2014 included in the study. Four hypotheses were
formulated and data and information obtained from secondary sources through the
financial statements, annual reports, journals and corporate websites etc. The
method of data analysis employed for this study is multiple regression analysis. The
overall results provide that moderate positive relationship with CG variables and ROI.
However the based on step wised regression analysis only the percentage of
independence directors provide significant impact on ROI.
