ASYMMETRIC RELATIONSHIP BETWEEN DIRECTORS’ REMUNERATION AND FINANCIAL PERFORMANCE OF LISTED INSURANCE COMPANIES IN NIGERIA USING GENERALISED METHOD OF MOMENT (GMM)

Despite the immense amount of academic research on different aspects of director’s remuneration, few studies have been carried out to check endogeneity aspect of director’s remuneration and financial performance. This study examines the relationship between directors’ remuneration and financial performance using generalised method of moment. Data were generated from annual report and account of the listed insurance companies in Nigeria. For the purpose of this study, the population entails all insurance companies listed on the floor of the Nigerian stock exchange as at 31st December 2019, out of which 19 were picked as the working population using census sampling. The findings indicated that, director’s remuneration as measured by log of director’s salary and other allowances accrued to directors affect financial performance significantly. It was recommended that, insurance companies should look inward to identify different strategies for motivation to continue to enhance performance.