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.

Analysis of Board Size and Firm Performance: Evidence from NSE Companies Using Panel Data Approach

2016 ◽  
Vol 9 (2) ◽  
pp. 148-172 ◽  
Author(s):  
Anjala Kalsie ◽  
Shikha Mittal Shrivastav
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Least Square ◽  
Empirical Literature ◽  
Board Size ◽  
Effect Model

This article seeks to examine the relationship between the board size and firm performance. Existing literature on board size is based on different theories of corporate governance. While agency theory and resource dependency theory suggest that the board size positively affects performance, stewardship theory favours smaller board size and argues that larger board size negatively impacts the firm performance. The present article adds to the empirical literature by employing panel data analysis of 145 non-financial companies listed in the NSE CNX 200 Index of India corresponding to 16 industries. The study is carried out for a period of five years from 2008 to 2012. The firm performance has been measured using Tobin’s Q and the market-to-book value ratio (MBVR) as market-based measures and return on assets (ROA) and return on capital employed (ROCE) as accounting-based measures. The fixed effect model, random effect model and feasible generalised least square (FGLS) regression models are applied to achieve the above-mentioned objectives. The results conclude that the board size has a positive and significant impact on the firm performance.

scholarly journals The Effect of Institutional Factors on the Profitability Risk in the Insurance Companies Listed in the Saudi Stock Market

2018 ◽  
Vol 11 (7) ◽  
pp. 12
Author(s):  
Abdulaziz Mohammed Alsahlawi
Keyword(s):  
Regression Analysis ◽  
Stock Market ◽  
Multiple Regression Analysis ◽  
Firm Size ◽  
Capital Market ◽  
Significant Relationship ◽  
Institutional Factors ◽  
Insurance Companies ◽  
Return On Assets ◽  
Insurance Firms

This paper conducted an investigation into the effect of institutional factors namely, leverage, capital market assets, and firm size on the risk of profitability among Saudi insurance companies listed in the Saudi Stock market (Tadawul). The paper also determined if the institutional theory has a significant impact on the profitability risk of Saudi insurance firms. On the basis of the findings from the multiple regression analysis that was conducted on the data obtained, the study’s institutional factors namely, leverage, capital market assets, and firm size had a significant relationship with the return on assets of the Saudi insurance companies, which in turn, increased their profitability. In other words, the findings supported the contribution of leverage, capital market assets and firm size to the profitability of Saudi insurance companies and provided considerable directions as to developing a strategy of profitability among the companies.

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 The Effect of Audit Quality on Firm Performance: A Panel Data Approach

2019 ◽  
Vol 9 (1) ◽  
pp. 229 ◽  
Author(s):  
May M. Elewa ◽  
Rasha El-Haddad
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Audit Quality ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Random Effect Model ◽  
Auditor Independence ◽  
Return On Equity ◽  
Financial Firms ◽  
Big 4

This study attempts to examine the effect of audit quality on firm performance. It uses financial statements of non-financial firms listed as EGX 100. The population studied consists of thirty non-financial firms. The study covers a five year period 2010-2014. It applies panel data analysis. Independent Variables are Auditor Experience (measured by Big-4) and Auditor Independence (measured by auditor Rotation ROT). Dependent Variables are Return on Assets ROA and Return on Equity ROE. In accordance with the Random Effect Model results, BIG 4 and ROT have an insignificant impact on the ROA and ROE of the firm. External and internal financial statement users may benefit from the study only when dealing with high-profit firms.

Bank Governance, Risk and Bank Insolvency: Evidence from Tunisian Banks

2017 ◽  
Vol 7 (2) ◽  
pp. 451
Author(s):  
Nesrine Djebali ◽  
Khemais Zaghdoudi
Keyword(s):  
Panel Data Analysis ◽  
Random Effect ◽  
Banking System ◽  
Bank Risk ◽  
Return On Assets ◽  
Bank Governance ◽  
Econometric Approach ◽  
Governance Risk ◽  
The Relationship ◽  
Random Effect Models

The aim of this paper is twofold. Firstly, it investigates the effect of bank governance on bank risk measured by the standard deviation of the return on assets (SDROA). Secondly, it tests the relationship between bank governance mechanisms and bank insolvency proxied by the Zscore (ROA). To achieve this goal, we used a sample of 11 Tunisian banks observed during the period 2006-2015. These 11 banks are considered as the most dynamic banks in the Tunisian banking system. The econometric approach used in this study is based on panel data analysis especially fixed and random effect models. Empirical results indicate that the presence of Supervisory Committee and monitoring of risks (COR), the executive compensation (REMB) and the board size (BDSIZE) increases significantly Tunisian bank risk and insolvency. However, the presence of independent directors (INDD) and the proportion of institutional investors decrease bank risk and bank insolvency. With regard to the effect on macroeconomic condition, only inflation rate exerts a significant effect. However, this effect is negative when the dependent variable is SDROA and positive for Z-score. The effect of GDPG is not significant for both bank risk and bank stability. 

scholarly journals PENGARUH INTELLECTUAL CAPITAL TERHADAP KINERJA KEUANGAN PADA BANK GO PUBLIC YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI) TAHUN 2009-2012

2014 ◽  
Vol 5 (2) ◽  
pp. 186-203
Author(s):  
Hamidah Hamidah ◽  
Dian Puspita Sari ◽  
Umi Mardiyati
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Value Added ◽  
Correlation Study ◽  
Return On Assets ◽  
Structural Capital ◽  
Capital Value

The purpose of this study is to know the effect of intellectual capital on financial performance on bank go public listed on the Indonesia Stock Exchange in 2009-2012. The sampel are several bank go public. The research method in this study uses correlation study. The research model in this study employs panel data analysis with random effect approach on model 1a and fixed effect approach on model 1b. The empirical results show that intellectual capital that proxy with Value Added Capital Employed (VACA), Value Added Human Capital (VAHU) have positive significant effect on Earning per Share (EPS) but Structural Capital Value Added (STVA) has negative and  no significant effect on Earning per Share (EPS). While, Value Added Capital Employed (VACA), Value Added Human Capital (VAHU) and Structural Capital Value Added (STVA) have positive significant effect on Return On Assets (ROA).  Keywords:       Intellectual Capital, Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), Structural Capital Value Added (STVA), Earning per Share (EPS), Return On Assets (ROA)

scholarly journals Effect of Corporate Governance on Islamic Banking: Evidence from Listed Firms of Pakistani Stock Exchange

2019 ◽  
Vol 9 (1) ◽  
pp. 170
Author(s):  
Laila Javeed
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Random Effect Model ◽  
Islamic Banks ◽  
Longitudinal Assessment ◽  
Listed Firms ◽  
Director Ownership

The Purpose of this study is to analyze the influence of corporate governance on firm performance (Islamic Banks) in Pakistan. The study presents a longitudinal assessment of the compliance and implications of the revised code on firm performance. This study uses data from listed firms of Pakistan Stock Exchange (PSE) for the years 2007-2016 to investigate the effect of corporate governance, indices the performance of Islamic Banks. The study uses panel data analysis and random effect model. We used board size, CEO duality, board independence, director ownership, and frequency of meeting as corporate governance indices, ROE, and ROA as performance of Islamic banks proxies. The results have intimation for regulatory authorities, shareholders and directors to take steps to improve the board competencies for better performance.

scholarly journals Factors Determining Profitability of the Insurance Industry of Bangladesh

2016 ◽  
Vol 3 (2) ◽  
pp. 138 ◽  
Author(s):  
G M Wali Ullah ◽  
Mohammad Nasrath Faisal ◽  
Sadaqa Tuz Zuhra
Keyword(s):  
Risk Premium ◽  
Insurance Industry ◽  
Ordinary Least Squares ◽  
Insurance Companies ◽  
Insurance Company ◽  
Internal Factors ◽  
Expense Ratio ◽  
Insurance Sector ◽  
Asset Growth ◽  
Insurance Firms

Insurance is a form of risk management, used to hedge against the risk of a contingent loss. It involves the transfer of the risk of potential loss from one entity to another, in exchange for a risk premium. Insurance sector plays an important role in service based economy of both developed and developing markets. The purpose of this research is to analyze the determinants that serve as significant predictors of non-life insurance firms’ profitability in Bangladesh. It analyzes panel data of eight different insurance companies—selected using convenience sampling method from the years 2004-2014 to assess whether any significant relationship exists between Profitability (ROA), and certain independent variables- Underwriting Risk, Expense Ratio, Solvency Margin, Premium Growth, Asset Growth, and Company Size using an Ordinary least squares (OLS) regression model. This paper found significant inverse relationship between Underwriting Risk, and Size, with Profitability (ROA). There is also a significant positive relationship between Expense Ratio, Solvency Margin, and Growth, with the Profitability (ROA). This study will help financial managers to understand which internal factors to focus on, in order to achieve greater profitability, thus maximizing the market value of the respective insurance company.

scholarly journals The Impact of Female Directors on Board, and Female CEO on Firm Performance: Empirical Evidence from Emerging Economy

2021 ◽  
Vol 7 (3) ◽  
pp. 711-723
Author(s):  
Muhammad Tasnim Khan ◽  
Sania Sarfraz ◽  
Muhammad Husnain
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Panel Data Analysis ◽  
Random Effect ◽  
Level Control ◽  
Corporate Leadership ◽  
Female Directors ◽  
Female Ceos ◽  
Leadership Structure ◽  
The Impact

Purpose: As per agency theory prospective, board gender diversity enhances the corporate leadership structure which mitigates agency conflicts among stakeholders. Therefore, this study investigates the impact of female directors on board, and female CEOs on firm performance. We also uses board size, and board independence as board level control, while leverage, firm size, capital expenditure & tangibility as firm level control. Design/Methodology/Approach: The study uses a panel data starting from 2005 to 2020 on annual basis. To resolve endogeneity and unobserved heterogeneity problems in panel data analysis, study uses static (fixed effect, & random effect) and dynamic (GMM) estimation techniques in Pakistan. Findings: Result shows the positive impact of female directors on board and female CEOs on firm performance. These findings are robust under alternative measures of firm performance. Implications/Originality/Value: The study suggests that female representation and female CEOs are the important attributes to enhance firm performance. Additionally, females are performing a significant role through monitor and control for excellent corporate leadership structure. Furthermore, this is the first study of its kind which analyzes this relationship in the emerging equity market of Pakistan. 

Do the Over-the-Counter Sales at Banks Expand the Individual Annuity Market in Japan?

2015 ◽  
Vol 9 (1) ◽  
Author(s):  
Hideto Azegami
Keyword(s):  
Life Insurance ◽  
Panel Data Analysis ◽  
Distribution Channel ◽  
Participation Rate ◽  
The Elderly ◽  
Insurance Companies ◽  
Over The Counter ◽  
Bank Branches ◽  
Insurance Policies ◽  
Insurance Firms

AbstractThis research investigates the effects of the over-the-counter (OTC) sales at banks on individual annuity markets in Japan. The ban on OTC sales of individual annuities at financial institutions was rescinded in October 2002. Deregulation is considered to have expanded the market because it began growing in FY 2001. Life insurance companies also announced that the sales of insurance policies through banks are affecting their profits. However, statistics on sales results aggregated by distribution channel have not yet been released. Thus, my empirical analysis investigates the relationships between the amount of new contracts for individual annuities provided by insurance firms and several explanatory variables, including the number of bank branches in a region, the Herfindahl index calculated using the amount of individual annuity contracts in force, rate of the elderly, prefectural income, labor force participation rate for older men, amounts outstanding of bank deposits, share of owned homes to total dwellings, amount of life insurance policies in force, and male life expectancy. The results of a panel-data analysis over a 10-year period, and including 47 prefectures and 14 major insurance firms, indicate that the number of bank branches is positively related to the amount of new contracts for several insurance companies.

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