A Note on Effects of Corporate Governance and Social Responsibility in Insurance

The paper examines the effects corporate governance and social responsibility on financial performance of European insurance companies. The empirical evidence provides support for unbiased and objective boards, indicating that investors trust independent directors as protectors of shareholder value, and increased number of board members. As for social responsibility, three main factors turn out to be relatively more important than others, in particular, employee turnover, community spending and UN Global Compact signatory.