Does service quality awarding enhance a firm’s financial performance? Evidence from Taiwan’s life insurance company

Purpose This study empirically examines the impact of service quality awards and corporate governance on the financial performance of Taiwanese life insurance companies from 2009 to 2014, offering critical managerial implications. Design/methodology/approach The findings indicate that firms receiving high-quality awards, particularly for corporate social responsibility, channel strategies and media integration, achieve superior financial performance, as measured by return on assets (ROA) and equity (ROE). Findings These results underscore the strategic value of service quality awards as credible signals of operational excellence, enhancing stakeholder trust and firm valuation. Managers should actively pursue industry-recognized awards and integrate them into investor relations strategies to reinforce market positioning and attract capital. Additionally, the study highlights the significant role of corporate governance in financial outcomes, with more excellent managerial representation on boards and higher blockholder ownership contributing to improved ROE. These findings emphasize the need for governance structures that align executive decision-making with shareholder interests, fostering financial stability and long-term profitability. Originality/value Policymakers should refine award criteria to emphasize sustainable value creation, while firms should leverage governance mechanisms to enhance transparency and accountability. Collectively, these insights position service quality awards and corporate governance as complementary drivers of financial performance, providing a competitive edge in the life insurance sector.