The Impact of Board Composition on Future Profitability of Insurance Companies Listed in Tehran Stock Exchange

Board responsibility is independent oversight of executives' performance and the need for managers to be accountable to shareholders and stakeholders, and is also the primary purpose of a company to maximize shareholder wealth. The effect of board composition on the future profitability of insurance companies listed in Tehran Stock Exchange was investigated. The scope of the present study was limited to the Tehran Stock Exchange and the time domain from 2010 to 1986. According to the systematic method of eliminating the number and availability of information of 15 insurance companies, the sample was selected. Finally, regression models were used to investigate each hypothesis. The research models were estimated based on the type of estimation method identified by F-Lemer and Hausman tests and the estimation results were analyzed for each model. The results of testing the main research hypotheses indicate that the first research hypothesis, namely board independence, has a significant direct effect on the future profitability of the companies listed in the Tehran Stock Exchange. Also, the second hypothesis of the study, namely, that the size of the board of directors has no significant effect on the future profitability of the company.