IDEAS home Printed from https://ideas.repec.org/a/pal/gpprii/v35y2010i1sps28-s49.html
   My bibliography  Save this article

The Impact of Corporate Governance on the Efficiency Performance of the Thai Non-Life Insurance Industry

Author

Listed:
  • Wen-Yen Hsu

    () (Department of Risk Management and Insurance, Feng Chia University, Taichung, Taiwan.)

  • Pongpitch Petchsakulwong

    () (PhD Program in Business, Feng Chia University, Taichung, Taiwan.)

Abstract

This paper examines the relation between corporate governance and efficiency performance of public non-life insurance companies in Thailand over the period 2000–2007. Data envelopment analysis is used to compute an insurer's efficiency performance including technical, allocative, cost, and revenue efficiency. We then employ truncated bootstrapped regression to test the relation between efficiency performance and corporate governance. The results show that the characteristics of corporate governance influence the efficiency performance of non-life insurers. In particular, board independence, diligence, and firm size have a positive impact on the efficiency performance of the Thai non-life insurance companies. However, audit committee size, diligence, divergence between voting rights and cash flow rights, board tenure, board age, as well as board ownership have a negative impact on the efficiency performance. Finally, our empirical evidence also indicates that there is an unclear relation between an insurer's efficiency performance and the board size, the proportion of financial expertise on an audit committee, and the board compensation.

Suggested Citation

  • Wen-Yen Hsu & Pongpitch Petchsakulwong, 2010. "The Impact of Corporate Governance on the Efficiency Performance of the Thai Non-Life Insurance Industry," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 35(S1), pages 28-49, December.
  • Handle: RePEc:pal:gpprii:v:35:y:2010:i:1s:p:s28-s49
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/gpp/journal/v35/n1s/pdf/gpp201030a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/gpp/journal/v35/n1s/full/gpp201030a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wanke, Peter & Barros, Carlos Pestana, 2016. "Efficiency drivers in Brazilian insurance: A two-stage DEA meta frontier-data mining approach," Economic Modelling, Elsevier, vol. 53(C), pages 8-22.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:gpprii:v:35:y:2010:i:1s:p:s28-s49. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.palgrave-journals.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.