Empirical Research On The Impact Of Governance On The Profitability Of Insurance Company

Since the reform and opening up in 1978,the concept of corporate governance began to be introduced into China.The development of corporate governance has gone through four stages: conceptual introduction,structure construction,mechanism establishment and effectiveness improvement.As an important component of corporate governance system,insurance company governance has also experienced from the concept of the introduction,the establishment of the system to start a number of stages.In 2006,the insurance industry "country ten" from the corporate governance construction and its regulatory aspects of a clear direction and requirements,the insurance company system construction and corporate governance reform gradually entered the "compliance" construction of a new stage.In 2011,the "Twelfth Five-Year Plan" of the insurance industry and the new "Article 10" of the insurance services industry in 2014 made more in-depth requirements for the management and supervision of insurance companies.Compared with foreign-funded enterprises,China's insurance industry in a very long time are extensive development,competition between China and foreign insurance companies will be embodied in the profitability of the competition.Therefore,this article from the perspective of profitability of insurance companies concerned about the level of governance,focusing on the improvement of its governance level can make the company profitability growth.In this paper,we have selected ten indicators to measure the profitability of our insurance companies.We carry out weighted least squares regression analysis from the aspects of insurance company governance index,different levels of governance,different content of governance and specific governance elements.Based on the sample and method,the robustness test was carried out by using the lag and factor analysis method,and the influence of corporate governance on the profitability of the insurance company was verified.The empirical results show that there is no significant relationship between the total index of insurance company and profitability,which indicates that the overall effectiveness of corporate governance in China is not enough,and corporate governance is not enough to significantly affect the profitability level.There is no significant relationship between the compulsory compliance index,the compulsory compliance index and the profitability of the insurance company at different levels,which indicates that the insurance company's compliance index does not play a positive role in improving the profitability level.From the point of view of different contents of governance,the company classified the company according to the company and found that there was no significant positive relationship between profitability and profitability,whether it was joint-stock or restricted insurance company.In terms of specific governance elements,the number of directors and the number of executives are significantly positively related to the profitability of insurance companies.To sum up,insurance companies can not see the effectiveness of governance at this stage,the whole did not play a role.Among them,the number of directors and the number of executives played a positive role.Finally,this paper puts forward some suggestions on the optimization of the board of directors,the optimization of the manager and the information disclosure system,hoping to contribute to the improvement of the effectiveness of the insurance company.