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ABSTRACT
The aim of this research is to examine the effect of firm characteristics on performance of listed insurance companies in Nigeria. Performance is the dependent variable proxied by Return on asset (ROA), while firm characteristics is the independent variable proxied by firm age, firm size, sales growth, liquidity and leverage. The population of the study consists of twenty six (26) listed insurance companies as at 31st December, 2019. Fifteen of the listed insurance companies are selected to form the sample of the study for the period of ten years (2010-2019). The study employed multiple regressions as tool for analysis. Secondary data obtained from the financial statements of the insurance companies were analyzed. Panel data techniques (fixed and random effects models) were utilized to examine the effect of firm characteristics on performance and Hausman specification test confirmed that random effects model was more appropriate for the study. The results show that leverage and liquidity have significant effects on performance. In contrast, firm size and firm age are not significantly affecting performance of listed insurance companies in Nigeria. The study therefore recommended that, Insurance firms in Nigeria should maintain their liquidity profile and standard while diversifying their assets in a way to remain profitable and sustainable. Also, insurance companies should critically reconsider its capital structure and should minimize the level of leverage. Leverage should not be increased further owing to the adverse impact of on performance.
