Firm specific factors that determine insurance companies’ performance in ethiopia
Daniel Mehari,Tilahun Aemiro +1 more
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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
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Firm-specific internal determinants of profitability performance: an exploratory study of selected life insurance firms in Asia
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Dissertation
Relationship between firm characteristics and financial performance of life insurance companies in kenya
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References
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Determinants of United Kingdom General Insurance Company Performance
TL;DR: In this paper, the authors identify the determinants of the performance of United Kingdom general insurance companies using a panel data set consisting of economic data and Financial Services Authority/Department of Trade and Industry returns over the period 1986 to 1999.
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Life Insurer Financial Distress: Classification Models and Empirical Evidence
James M. Carson,Robert E. Hoyt +1 more
TL;DR: In this article, the authors extend previous research on life insurer insolvency by providing empirical evidence on a large (non-matched-pair) sample of insurers based on three alternative types of statistical models.
Journal ArticleDOI
Life Insurer Financial Distress: Classification Models and Empirical Evidence
James M. Carson,Robert E. Hoyt +1 more
TL;DR: In this article, the authors extend previous research on life insurer insolvency by providing empirical evidence on a large (non-matched-pair) sample of insurers based on three alternative types of statistical models.
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