Firm-Specific Determinants of Insurance Companies’ Capital Structure in Ethiopia

2017 ◽  
pp. 155-175
Author(s):  
Yitbarek Takele ◽  
Daniel Beshir
Keyword(s):  
Capital Structure ◽  
Insurance Companies

scholarly journals Cash flows, capital structure and shareholder value: Empirical evidence from Amman stock exchange

Accounting ◽  
2021 ◽  
pp. 513-524 ◽  
Author(s):  
Fawzi A. Al Sawalqa
Keyword(s):  
Capital Structure ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Shareholder Value ◽  
Fixed Effect Model ◽  
Cash Flows ◽  
Insurance Companies ◽  
Investment Projects ◽  
Effect Model ◽  
Amman Stock Exchange

The current study links the information contents of the three main financial statements in a balanced panel data model to empirically examine the effect of cash flows per share and capital structure on shareholder value. The results of the study are based on a sample of 270 firm-year observations from the Jordanian commercial banks and insurance companies that listed on Amman Stock Exchange (ASE) from 2011 to 2019. Based on the Fixed Effect Model (FEM) with Driscoll-Kraay standard errors, the empirical results show that cash flows from operating activities per share had a positive and significant relationship with shareholder value, whereas both the cash flows from investing and financing activities per share had negative but insignificant relationship with shareholders’ value. Results also show that capital structure had a negative but insignificant relationship with shareholder value. Finally, the results indicate that dividend per share had a positive and significant relationship with shareholder value. Accordingly, decision-makers should direct cash to efficient investment projects in order for cash outflows from investing activities to create value to shareholders and to generate positive cash flows from financing activities. Similarly, an appropriate capital structure should be selected to create value for shareholders.

scholarly journals MACROECONOMIC VARIABLES AND CAPITAL STRUCTURE: PUBLIC FINANCE AND INSURANCE IN LATIN AMERICA AND ASIA

2021 ◽  
Vol 9 (2) ◽  
pp. 133-142
Author(s):  
Caio Augusto Franco Lucas ◽  
Rafael Martins Noriller ◽  
Rosemar José Hall ◽  
Maria Aparecida Farias de Souza Nogueira ◽  
Ducineli Regis Botelho
Keyword(s):  
Public Finance ◽  
Latin America ◽  
Exchange Rate ◽  
Interest Rate ◽  
Capital Structure ◽  
Insurance Companies ◽  
Panel Analysis ◽  
Macroeconomic Variables ◽  
The Relationship ◽  
The Capital Structure

This article analyzes the relationship between macroeconomic variables and the capital structure of public finance and insurance companies in Latin America and Asia. The variables used were: Gross Domestic Product (GDP), Exchange Rate (ER), Interest Rate (%Δ IR), and Capital Structure (CS). Data were analyzed annually from 2010 to 2018 by static panel analysis and multiple regression using the Newey-West estimator. Interest rate and exchange rate were negatively correlated with CS. However, GDP was not significantly correlated with CS at 10% probability. It is concluded that macroeconomics interferes with the capital structure of financial institutions in Latin America and Asia.

scholarly journals Effects of Capital Structure on Financial Performance of Insurance Companies in Nepal

2020 ◽  
Vol 10 (3) ◽  
pp. 35
Author(s):  
Bishnu Prasad Bhattarai
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Annual Report ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Insurance Companies ◽  
Return On Assets ◽  
Total Debt ◽  
Effect Model

The study has examined the effects of capital structure on financial performance of insurance companies in Nepal. Data were collected from the annual report of the respective insurance companies' web site. The panel data of 14 Nepalese insurance companies from 2007/08 to 2015/16, leading to a total of 126 observations. The data were analyzed using pooled OLS model, random effect model and fixed effect model. The study has been return on assets as dependent variable whereas total debt ratio, equity to total assets, leverage, firm size, liquidity ratio and assets tangibility are independent variables. The result concluded that equity to total assets, leverage, and assets tangibility have effects the financial performance in Nepalese insurance companies' cases.

scholarly journals IMPACT OF CAPITAL STRUCTURE ON THE PERFORMANCE OF QUOTED INSURANCE FIRMS IN NIGERIA

2021 ◽  
Vol 9 (07) ◽  
pp. 324-334
Author(s):  
Oluwaleye, Taiwo Olarinre ◽  
◽  
Kolapo, Funso Tajudeen (PhD) ◽  
Ajayi, Foluso Isaac ◽  
◽  
...  
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Granger Causality ◽  
Life Insurance ◽  
Panel Cointegration ◽  
Insurance Companies ◽  
Causality Test ◽  
Long Run ◽  
Short Run ◽  
The Impact

Evidence from the past studies revealed that capital structure has an impact on the firm performance. This research appraises the impact of capital structure on the performance of quoted life insurance companies in Nigeria from 2010 to 2019. The researchers used the panel cointegration model, autoregressive dynamic lag error correction model and pair wise granger causality test to measure the relationship among the variables. The study revealed that capital structure and firm performance has a long-run relationshipand 81% long run disequilibrium is corrected within a year. It was also apparent that there is a significant short run relationship between liquidity of life insurance and return on asset. The Granger causality outcome also shows that bidirectional causality exists between firm size (SIZE) and profitability (ROA) in the short run. We conclude that a large size of life insurance firm has more scope to make more profit in Nigeria context within the study period. The study recommended that to maximize firm’s performance managers must endeavor to obtain and maintain an optimum capital structure level among others.

scholarly journals PENGARUH STRUKTUR MODAL DAN PROFITABILITAS TERHADAP HARGA SAHAM (Studi Kasus Pada Perusahaan Asuransi yang Terdaftar Di Bursa Efek Indonesia Periode 2015 sampai dengan 2017)

2018 ◽  
Vol 3 (2) ◽  
pp. 308
Author(s):  
Mutiara Lusiana Annisa ◽  
Rizki Fitri Amalia
Keyword(s):  
Capital Structure ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Sampling Technique ◽  
Linear Analysis ◽  
Quantitative Approach ◽  
Insurance Companies ◽  
Purposive Sampling

This research purpose to know and explaining the effect of capital structure and profitability stock prices case of studies at the insurance companies that listed on the Indonesia Stock Exchange from period time of 2015 untul 2017. The type of research used is explanatory causality research with quantitative approach. Based on sampling technique “purposive sampling” researcher used 11 companies that meets the criteria. The method of analysis used in this research is statistical descriptive analysis multiple linear analysis. The result of the methods show that the capital structure and profitability have a significant effect on the structure of the stock price. The results of research for capital structure has an insignificant the stock price and profitability has a significant the stock price.

scholarly journals PENGARUH RISIKO BISNIS DAN UKURAN PERUSAHAAN TERHADAP RETURN ON ASSET DENGAN STRUKTUR MODAL SEBAGAI VARIABEL MODERASI (Studi pada Perusahaan Asuransi yang terdaftar di Bursa Efek Indonesia Periode 2015-2018)

2021 ◽  
Vol 19 (1) ◽  
pp. 51
Author(s):  
Edi Permana ◽  
Yumniati Agustina
Keyword(s):  
Regression Analysis ◽  
Capital Structure ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Sampling Technique ◽  
Insurance Companies ◽  
Coefficient Of Determination ◽  
Company Size ◽  
Business Risk ◽  
Return On Assets

This research was conducted to determine the extent of the influence of business risk and firm size on return on assets with capital structure as a moderating variable. This study using a population of insurance companies listed on the Indonesia Stock Exchange (IDX). The sampling technique used is purposive sampling. Data analysis on this research uses multiple linear regression analysis, moderation regression analysis, t-test, f and coefficient of determination test. The results of this study indicate that business risk has a positive effect, while company size does not have a significant effect on return on assets. In addition, the capital structure is not able to moderate the effect of business risk and company size on the insurance company's return on assets. The results of the simultaneous study of business risk and company size have a significant influence on the return on assets.

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