Corporate Governance, Social Responsibility and Financial Performance of European Insurers



Year of publication 2017
Type Article in Periodical
Magazine / Source Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis
MU Faculty or unit

Faculty of Economics and Administration

Field Management and administrative
Keywords insurance; corporate governance; corporate social responsibility
Attached files
Description In this paper, we focus on corporate governance and corporate social responsibility in European insurance industry and test its e ects on nancial performance. Using a sample of European insurance companies releasing corporate governance and social responsibility information available in Bloomberg Environmental, Social, and Governance disclosure, we provide evidence of better nancial performance of insurers with unbiased and objective boards, increased number of board members (indicating that investors trust independent directors as protectors of shareholder value), lower employee turnover and higher community spending. Compliance with UN Global Compact signatory also contribute to better market performance. As a result, we show that insurance companies can be socially responsible and nancially successful at the same time.
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