Acta Univ. Agric. Silvic. Mendelianae Brun. 2017, 65, 1873-1888
Published online 2017-12-07

Corporate Governance, Social Responsibility and Financial Performance of European Insurers

Oleg Deev, Nino Khazalia

Department of Finance, Faculty of Economics and Administration, Masaryk University, Lipová 41a, 602 00 Brno, Czech Republic

In this paper, we focus on corporate governance and corporate social responsibility in European insurance industry and test its effects on financial performance. Using a sample of European insurance companies releasing corporate governance and social responsibility information available in Bloomberg Environmental, Social, and Governance disclosure, we provide evidence of better financial performance of insurers with unbiased and objective boards, increased number of board members (indicating that investors trust independent directors as protectors of shareholder value), lower employee turnover and higher community spending. Compliance with UN Global Compact signatory also contribute to better market performance. As a result, we show that insurance companies can be socially responsible and financially successful at the same time.


The support of the Masaryk University internal grant MUNI/A/1039/2016 is gratefully acknowledged.


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