The Nomination and Remuneration Committee: Does it Really Matter on the Financial Performance of Insurance Companies in Bangladesh?

The establishment of the nomination and remuneration committee (a key element of corporate governance structures) arises from the imperative to uphold principles of fairness, impartiality and transparency within the organization which serves to strengthen stakeholders’ confidence and enhance overall business performance. The purpose of this paper is to investigate the relationship between a firm’s financial performance and its nomination and remuneration committee (NRC). As shown in the section delineating the research technique, the statistical software STATA was employed to analyze the correlation between the independent and dependent variables in this inquiry. The dataset consisted of total ۴۸ insurance firms listed in the Dhaka Stock Exchange over the time period of ۲۰۱۵ to ۲۰۲۲ resulting in a total of ۳۸۴ firm-year observations. The results show that there is a statistically significant positive relationship between the financial measures (EPS, ROE) and the independent variable (NRC) except the ROA which is not statistically significant. This investigation seeks to address a gap in the existing literature by examining the company financial performance within the emerging insurance sector of Bangladesh. The study concludes by suggesting that further investigation and research in this area are warranted. Presumably, this means there are more aspects to explore regarding the relationship between financial performance and NRC in the context of the insurance sector in Bangladesh.

Keywords:

firms’ performance , Insurance Companies , Nomination and Remuneration Committee (NRC)