ABSTRACT
With an emphasis on the insurance sector in Nigeria, the study looks into the effects of regulations on business survival. In this study, twenty (20) insurance businesses listed on the floor of the Nigerian stock market for the ten (10) years 2010-2020 are included out of the twenty-eight (28) insurance companies that are currently listed on the Nigerian Stock market (NSE). For this investigation, the autoregressive distribution lag (ARDL) estimate approach was used.
The findings demonstrate a positive correlation between company performance and liability during the pre-recapitalization era, suggesting that greater levels of liability were linked to improved financial performance. During this time, there was no statistically significant correlation discovered between capital reserve and company performance. The association between fixed assets and business performance was not statistically significant. It was discovered that growth has a detrimental effect on company performance. Additionally, the results indicate a negative association between liability and company performance in the post-recapitalization era, indicating that increased liability levels had a negative impact on firm performance.It should be noted that this link lacked statistical significance. As with the pre-recapitalization era, there was no statistically significant correlation discovered between the success of the company and its capital reserve. Growth and company performance were shown to be positively correlated, suggesting that higher growth rates were linked to superior overall performance. There was statistical significance in this association. The link between fixed assets and company performance was shown to be negative, meaning that having more fixed assets had a detrimental effect on performance. There was statistical significance in this association.
The report makes the recommendation that authorities closely oversee and control liability levels in the insurance industry in light of its results. Encouraging risk management frameworks and putting in place suitable liability limitations may assist minimise any negative impacts on business performance and guarantee financial stability. Legislators ought to enact measures that promote investment in technology, innovation, and market competitiveness. Simplified rules, rewards for new product creation, and assistance with digital transformation projects may all help achieve this. It is imperative for policymakers to ensure that the regulatory framework permits insurance firms to allocate their assets in the most efficient manner possible. Businesses can operate more effectively overall if they are given the flexibility to adjust to changing market conditions and make investments in assets that fit their business models.
