Firm specific factors that determine insurance companies’ performance in ethiopia
Daniel Mehari,Tilahun Aemiro +1 more
TLDR
In this paper, the authors investigated the impact of firm level characteristics (size, leverage, tangibility, loss ratio (risk), growth in writing premium, liquidity, leverage and loss ratio) on performance of insurance companies in Ethiopia.Abstract:
The performance of any business firm not only plays the role to improve the market value of that specific firm but also leads towards the growth of the whole sector which ultimately leads towards the overall prosperity of the economy Assessing the determinants of the performance of organizations has gained importance in the corporate finance literature; however, in the context of insurance sector, it has received little attention particularly in Ethiopia Accordingly, this study investigated the impact of firm level characteristics (size, leverage, tangibility, Loss ratio (risk), growth in writing premium, liquidity and age) on performance of insurance companies in Ethiopia Return on total assets (ROA) - a key indicator of insurance company's performance- is used as dependent variable while age of company, size of the company, growth in writing premium, liquidity, leverage and loss ratio are independent variables The sample includes 9 insurance companies over the period 2005-2010 The audited annual reports (Balance sheet and Profit/Loss account) of insurance companies were obtained from National Bank of Ethiopia (NBE) and insurance companies’ annual publication reports The results of regression analysis reveal that insurers’ size, tangibility and leverage are statistically significant and positively related with return on total asset; however, loss ratio (risk) is statistically significant and negatively related with ROA Thus, insurers’ size, Loss ratio (risk), tangibility and leverage are important determinants of performance of insurance companies in Ethiopia But, growth in writing premium, insurers’ age and liquidity have statistically insignificant relationship with ROAread more
Citations
More filters
Journal ArticleDOI
Determinants of business performance of non-life insurance companies in Serbia
TL;DR: In this article, the authors presented results of the assessment of performance of companies engaged in non-life insurance business in Serbia, using CARMEL indicators and multiple regression analysis, and showed a significant and negative influence of the combined ratio, financial leverage, and retention rate on the profitability of nonlife insurers, as measured by the return on assets (ROA), while the influence of written premium growth rate, return on investment and company size is significant and positive.
Journal ArticleDOI
Factors affecting the business performance of enterprises: Evidence at Vietnam small and medium-sized enterprises
TL;DR: In this paper, the authors used a multivariate linear regression model based on the least squares method to estimate the factors affecting the performance of small and medium-sized enterprises (SMEs) in Vietnam.
Journal ArticleDOI
Profitability determinants of infrastructure public private partnerships (PPPs): empirical evidence from Indian data
TL;DR: In this paper, the authors empirically investigate the variables having an impact on profitability of public private partnerships (PPPs) in India using a balanced panel data of 171 unlisted PPPs from different infrastructure sectors such as road, power generation, real estate and ports.
Journal Article
Determinants of Saudi Takaful Insurance Companies Profitability
TL;DR: In this paper, the authors investigated the main internal factors affecting the profitability of insurance Takaful companies in an Islamic insurance system, which represents more than 60% of the total assets of the Insurance market.
Journal Article
Company’s Supply Chain Strategy in Internal Factors to Predict Capital Structure and Profitability on Manufacturing Sector
TL;DR: In this article, the authors analyzed the influence of internal factors including company size and tangibility on capital structure and profitability and analyzed the impact of internal advertising factors on profitability on profitability.
References
More filters
Journal ArticleDOI
Agency Problems and Residual Claims
Eugene F. Fama,Michael C. Jensen +1 more
TL;DR: Jensen and Fama as mentioned in this paper developed a set of propositions that explaim the special features of the residual claims of different organizational forms as efficient approaches to controlling agency problems and explained the survival of organizational forms in specific activities.
brand community
TL;DR: This paper explored the characteristics, processes, and particularities of three brand communities (those centered on Ford Bronco, Macintosh, and Saab) and found that these brand communities exhibit three traditional markers of community: shared consciousness, rituals and traditions, and a sense of moral responsibility.
Journal ArticleDOI
Stock Versus Mutual Ownership Structures: The Risk Implications
TL;DR: In this paper, the authors provide empirical tests of the risk differences between two types of ownership structure in the property-liability insurance industry and provide empirical evidence that suggests stock insurers have more risk than mutuals where the risk inherent in future cash flows is proxied by the variance of the loss ratio.
Journal ArticleDOI
The Impact of Firm Risk on Property-Liability Insurance Prices
TL;DR: In this paper, the authors examined the impact of an insurer's level of insolvency risk on the prices the insurer obtains for its products in the property-liability insurance market.
Related Papers (5)
The determinants of corporate financial performance in the Bermuda insurance market
Mike Adams,Mike Buckle +1 more