scholarly journals Determining the Factors Affecting Liquidity Risk in Insurance Companies: Borsa İstanbul Example

2021 ◽  
Vol 4 (13) ◽  
pp. 3428-3434
Author(s):  
İsmail Yıldırım
Keyword(s):  
Liquidity Risk ◽  
Insurance Companies ◽  
Factors Affecting

scholarly journals Financial Factors Affecting Earnings Management and Earnings Quality: New Evidence from an Emerging Market

2020 ◽  
Vol 9 (1) ◽  
pp. 198-216
Author(s):  
Isam Saleh ◽  
Malik Abu Afifa ◽  
Fadi Haniah
Keyword(s):  
Earnings Management ◽  
Emerging Market ◽  
Earnings Quality ◽  
Panel Data Analysis ◽  
Insurance Companies ◽  
Policy Makers ◽  
Factors Affecting ◽  
Financial Factors ◽  
Study Population ◽  
New Evidence

The purpose of this study is to examine the effect of financial factors on earnings management and earnings quality. Moreover, the study examines the role of earnings management as a mediator in the effect of the financial factors on earnings quality. It provides some empirical evidences from an emerging market, especially from the Jordanian market. The study uses a panel data analysis method over a ten-year period (2009-2018). The study population includes all Jordanian insurance companies listed in Jordanian market at the end of the year 2019, and the study sample consists of 20 Jordanian insurance companies (a complete population), giving a total of 200 observations for each variable. The results indicate that all financial factors in the model combined affect the earnings management and earnings quality. In addition, earnings management negatively affects earnings quality, and earnings management fully mediates the effect of financial factors on earnings quality. The study advises that policy makers ought to follow good legislation to curb the company's earnings management activities. Hence, the policy makers need to apply regulations which enrich the company’s effectiveness and efficiency whilst protecting the investors and other interested parties from risk.

Prioritizing Risk-level Factors in Comprehensive Automobile Insurance Management: A Hybrid Multi-criteria Decision-making Model

2020 ◽  
pp. 097215092093228
Author(s):  
Zahra Shams Esfandabadi ◽  
Meisam Ranjbari ◽  
Simone Domenico Scagnelli
Keyword(s):  
Insurance Market ◽  
Insurance Companies ◽  
Risk Level ◽  
Automobile Insurance ◽  
Two Phase ◽  
Analytic Hierarchy ◽  
Factors Affecting ◽  
Risk Levels ◽  
Fuzzy Delphi ◽  
The Individual

An efficient risk-level prediction for newly proposed insurance policies plays a significant role in the survival of companies in the highly competitive insurance market. In Iran, risk assessment in comprehensive automobile insurance, which is a part of motor insurance, is only based on the vehicle attributes without proper consideration of personal and behavioural characteristics of driver(s). As a result, pricing is unfair in most of the cases and this can put insurance companies in an unfavourable financial position due to attracting high-risk drivers instead of low-risk ones. In this scenario, to identify and prioritize important factors affecting risk levels and to move towards a fair ratemaking, a two-phase process based on fuzzy Delphi method (FDM) and fuzzy analytic hierarchy process (FAHP) is proposed in this research. Additionally, similarity aggregation method (SAM) is applied to combine the individual fuzzy opinions of the surveyed experts into a group fuzzy consensus opinion. The results of this empirical study contribute to the insurance market of Iran by proposing appropriate weighting of the relevant risk factors to support stakeholders and policymakers for assessing risks more accurately, as well as designing more effective databases and insurance proposal forms.

scholarly journals Factors Affecting Employees’ Work Passion in the Thai Insurance Industry

2019 ◽  
Vol 9 (4) ◽  
pp. 168
Author(s):  
Boonthipa Jiantreerangkool ◽  
Wasita Boonsathorn ◽  
Gary N. McLean
Keyword(s):  
Insurance Industry ◽  
Opportunity To Learn ◽  
Personal Characteristics ◽  
Insurance Companies ◽  
Financial Industry ◽  
Structured Interviews ◽  
Factors Affecting ◽  
Executive Managers ◽  
Definition Of ◽  
Work Passion

The objectives of this study were to: 1) identify the perceived definition of staff work passion, and 2) explore perceived factors affecting staff work passion, both in the Thai insurance industry. The study was qualitative, using semi-structured interviews with open-ended questions. Participants were 36 key informants from life and non-life insurance companies in Thailand, including executive managers, middle managers, and staff, selected to maximize variation in responses. The definitions of staff work passion in the Thai insurance industry were comprised of five categories: happiness, pride, goal setting, personal efficacy, and job fit. Seven factors affecting work passion were highlighted: 1) the power of teamwork, 2) great support from leader, 3) work value, 4) challenge and variety of work, 5) supportive company policies, 6) gaining knowledge and opportunity to learn, and 7) providing good service to customers. These findings were incorporated into an employee work passion model adapted from Blanchard’s model. The model showed personal characteristics of individual as meanings of work passion; organization and job characteristics; and organizational role behaviours as factors affecting work passion. The model might apply to similar businesses within the financial industry, e.g., insurance brokerage companies, financial institutions, and stock and securities firms.

scholarly journals Relationship between trading volume, stock return and return volatility: A case of Nepalese insurance companies

2019 ◽  
Vol 2 (2) ◽  
pp. 32-41
Author(s):  
Niraj Acharya ◽  
Sumit Pradhan
Keyword(s):  
Firm Size ◽  
Life Insurance ◽  
Market Price ◽  
Investment Strategy ◽  
Share Price ◽  
Insurance Companies ◽  
Return On Assets ◽  
Factors Affecting ◽  
Share Prices ◽  
Price Earnings Ratio

This study examines the factors affecting the share price of Nepalese non-life insurance companies. The knowledge of the factors and their possible impact on share prices is highly appreciable as it would help investors make wise investment decisions and enable firms to enhance their market value. This study is based on secondary data of 15 non-life insurance companies which are listed in Nepal stock exchange. The study covers seven years period from the fiscal year 2011/12 to 2017/18. The result shows that firm size is positively related to market price of share and price earnings ratio. It indicates that larger firm size leads to increase in market price of share and price earnings ratio. However, the study shows that inflation is negatively related to market price of share and price earnings ratio. The study also shows that dividend per share and return on assets are negatively related to the market price of share and price earnings ratio. Similarly, earnings per share have negative relationship with market price of share and price earnings ratio. The study concludes that the increase in return on assets and earnings per shares do not explain the variation in stock price in Nepalese non-life insurance companies. Nepal is one of the emerging economy; the determinants identified may provide knowledge to the potential investors about the key factors affecting share prices in the country and accordingly assist them in optimizing their investment strategy.

scholarly journals Effect of Liquidity Risk, Premium Growth on the Performance of Quoted Insurance Firms in Nigeria: A Panel Data Analysis

2018 ◽  
Vol 2 (1) ◽  
pp. 42-51
Author(s):  
Lasisi Isiaka Olalekan
Keyword(s):  
Firm Performance ◽  
Risk Premium ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Liquidity Risk ◽  
Insurance Companies ◽  
Secondary Source ◽  
Loss Ratio ◽  
Return On Assets ◽  
Insurance Firms

This study assesses the effect of liquidity risk on firm performance of listed insurance companies in Nigeria for the period of 2011-2015. The listed insurance firms are twenty Five (25) in numbers out of which a sample of twelve (12) were used for the study. Liquidity risk as the independent variable was proxy with leverage, claim loss ratio and premium growth, while the return on asset was used to proxy firm performance. The study adopts a panel multiple regression techniques and data were collected from secondary source through the annual reports of the firms after controlling for fixed/random effects.The findings of random effect reveal that leverage has significant negative effect on return on assets. The claim loss ratio has insignificant negative influence on return on assets while premium growth has positive and insignificant effect on firm performance of listed insurance companies in Nigeria. It is recommended among others that the managers, shareholders and other stake holders to checkmate and control liquidity risk as it have been found empirically to enhance the quality of the firm’s financial performance.

scholarly journals Liquidity Determinants of the Selected Banking Sectors and their Size Groups

2016 ◽  
Vol 64 (3) ◽  
pp. 971-978 ◽  
Author(s):  
Jana Laštůvková
Keyword(s):  
Liquidity Risk ◽  
Risk Measurement ◽  
Specific Method ◽  
Panel Regression ◽  
Factors Affecting ◽  
Macroeconomic Variables ◽  
Dependent Variables ◽  
Size Groups ◽  
The Given ◽  
Higher Sensitivity

The article focuses on the factors affecting the liquidity of selected bank sectors, as well as their size groups, using panel regression analysis. For higher complexity of the results, multiple dependent variables are used: liquidity creation, outflow and net change. The values are calculated based on the specific method of liquidity risk measurement – gross liquidity flows. The results indicate both multiple effects of some factors on the given variables, as well as isolated influence of factors on a single liquidity form or size group. Thus, when looking for determinants using just one form of liquidity, such as creation, the results need not necessarily comprehensively show the influence of the given factors, and can lead to erroneous conclusions. The results also point to the differing behaviours of the size groups and their different sensitivity on the factors; smaller banks have shown higher sensitivity on macroeconomic variables. Higher flexibility in regulation could lead to higher optimization.

scholarly journals The Impact of Directors’ and Officers’ Liability Insurance on Corporate Performance: An Empirical Evidence from the Data of Chinese Listed Financial Enterprises

2020 ◽  
Vol 7 (1) ◽  
pp. 35-45
Author(s):  
Zhe Sun
Keyword(s):  
Significant Positive Correlation ◽  
Corporate Performance ◽  
Liability Insurance ◽  
Insurance Companies ◽  
Significant Positive Effect ◽  
Factors Affecting ◽  
Directors And Officers ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

 Based on data of the listed banks and insurance companies from 2011-2016, this paper studies the factors affecting directors’ and officers’ liability insurance, the relationship between directors’ and officers’ liability insurance and corporate performance. Empirical research shows that there is a significant positive correlation between the company’s asset-liability ratio, corporate performance and directors’ and officers’ liability insurance. Directors’ and officers’ liability insurance has a significant positive effect on corporate performance of listed banks and insurance companies. The empirical findings of this paper will help to strengthen the understanding of directors’ and officers’ liability insurance in bank and insurance companies and promote the widespread use of directors’ and officers’ liability insurance in the future.

scholarly journals Factors Affecting the Profitability of Insurance Companies in Albania

2016 ◽  
Vol 1 (1) ◽  
pp. 352
Author(s):  
Dorina Kripa ◽  
Dorina Ajasllari
Keyword(s):  
Growth Rate ◽  
Quantitative Methods ◽  
Performance Metrics ◽  
Annual Reports ◽  
Insurance Companies ◽  
Company Size ◽  
Factors Affecting ◽  
Fixed Assets ◽  
The Impact ◽  
A Company

Good performance of a company determines the position of the company in its market and the growth and consolidation of the market, giving as result the development of the economy as a whole. The importance of this topic further enhanced when dealing with insurance companies because: 1) insurance companies’ transfers risk in the economy 2) provide a mechanism to promote savings 3) promote investment activities. The growing importance of insurance companies in Albania and the importance of profitability as one of the key performance metrics of a company are the reasons why we decide to write this paper. The variation of profits between insurance companies over the years, within a country, leads to believe that internal factors play a major role in determining profitability. We have taken under study the impact of growth rate, liabilities, liquidity, fixed assets, volume of capital and company size on the profitability of insurance companies. The methodology used is based on quantitative methods and the data are provided by reliable sources such as annual reports of insurance companies’, FSA reports and NRC . We have taken under study 7 companies, including non-life and life insurance companies, from 2008- 2013. The results of the paper show that factors such as growth rate, liabilities, liquidity and fixed assets are the main factors affecting the profitability of insurers, where the growth rate is positively associated with profitability, while liabilities, liquidity and fixed assets are negatively correlated. Company size and the volume of capital are positively correlated with the profitability of insurance companies’, but their impact is statistically insignificant.

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