The Impact Of Insurance Corporate Governance On Corporate Performance:an Empirical Study

In recent years, the issue of governance of insurance companies increasingly attracts attention of scholars. The insurance company has its unique characteristics in business, corporate governance objects, corporate governance principles, which determines that the insurance corporate governance structure is different from the ordinary company, so does the effect of corporate governance on corporate performance. So the study of insurance corporate governance should be listed separately.According to the current situation of the insurance companies’corporate governance, corporate governance has completed the transformation from scratch, and most of the insurance companies establish a modern corporate governance mechanisms associated with relatively complete system of board of directors, board of supervisors and board of shareholders. It is undoubtedly a major step to the insurance company. The perfection of governance mechanism is helpful for scientific decision-making, efficient execution and protecting shareholders’ equity. However, from the point of horizontal, modern corporate governance in China is still in the development stage. The time of using the corporate governance in the insurance industry is short, and there is a big gap in corporate governance with Europe and the United States. Most domestic insurance companies have all kinds of necessary governance mechanisms and institutions in form, but the company does not form the organic unity of the governance system, and the impact on corporate performance is relatively weak. How to change from formal governance mechanisms into substantive governance mechanism, urge the governance system really to work for an insurance company and improve the performance of the insurance company are currently important issues of china’s insurance companies.This paper is divided in five parts. It firstly reviews the theories about the origin of the insurance corporate governance, and identifies the internal governance mechanisms of corporate governance will be the main object of this paper. Then the writer collects and analyses the literature on the relations between the corporate governance factors and corporate performance. In the second part, the writer sums up the development process of China’s insurance industry corporate governance. Then analyze the particularity of China’s insurance corporate governance, pointing out the reality of the insurance company governance structure. Thirdly, the writer describes the impact of the corporate governance structure of the insurance company’s performance mechanisms, and illustrates the relationship between state structure, board characteristics as well as executive incentives and corporate performance. The forth part mainly analyses the impact of equity structure and board characteristics in corporate governance on business performance by means of empirical way and collected data, and draws the appropriate conclusions. Finally it make the corresponding recommendations from four aspects, the equity optimization, optimization of the board of directors, executive incentive optimization and information disclosure, to improve governance in the insurance company. I hope that it also can make the corporate governance structure of the insurance company perfect.