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

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.

2021 ◽  
Vol 2 (2) ◽  
pp. 77-90
Author(s):  
Ng Husin ◽  
Atika Purnamasari

This study aims to examine the effect of loan to deposits ratio, firm size and debt to asset ratio on return on assets in banking companies listed on the indonesia stock exchange 2015-2019. The research method used is hypothesis or causal testing. This study uses quantitative secondary data in the form of financial statements for the 2015-2019 period from banking companies listed on the indonesia stock exchange which were taken as a sample of 7 companies. The statistical analysis used in this study is multiple regression analysis, while the hypothesis testing used is the t test, r test, and the determinant coefficient (r2). The results of the research show that (1) Loan to deposits ratio has an effect on return on assets, (2) Firm size has an effect on return on assets, (3) Debt to asset ratio has an effect on return on assets, (4) Simultaneously loan to deposits ratio, firm size and debt to asset ratio has an effect on return on assets.


2014 ◽  
Vol 1078 ◽  
pp. 444-447
Author(s):  
Zhan Xin Ma ◽  
En Yang Zhao ◽  
Xi Ming Lv ◽  
Zhi Min Ma

As a barometer of the macroeconomic of a country and an important part of the capital market, stock market has attracted increasing and highlighted attention. As is well-known, Chinese stock market is known as 'policy market', however, the issue about whether the stock market is really influenced by these policies is always an important and hot topic. In this paper, by using generalized data envelopment analysis, an analysis on the effect of the new policies carried out in May 2012 is provided based on closing price, Tobin Q, circulation market value, turnover rate, and return on assets. Based on the above results, it can show the effect of stock market policies on Chinese Economy.


2021 ◽  
Vol 1 (2) ◽  
pp. 145-157
Author(s):  
Nurul Ichsan Hasan ◽  
R. Rizny Anindya Reswanty

This study analyzes the influence Financing to Deposit Ratio (FDR), Non Performing Financing (NPF), Capital Adequacy Ratio (CAR), Operational Costs and Operating Income Against Return On Assets (ROA) BPRS in Indonesia Period from 2010-September 2017. The data used in this study is. Sampling technique used in this research is purposive sampling. The method of analysis used in this study is Multiple Regression Analysis using the computer program Eviews Software version 9 and Microsoft Excel 2013. The results in this study show that Financing to Deposit Ratio (FDR), Non Performing Finance (NPF), Capital Adequacy Ratio  (CAR), and BOPO simultaneously have a significant effect on Return On Asset (ROA). Financing to Deposit Ratio (FDR), Non Performing Financing (NPF) partially do not have a significant effect on Return On Aset (ROA).


2020 ◽  
pp. 249
Author(s):  
Sutrisno Sutrisno ◽  
Bagus Panuntun

The purpose of this study is to examine the effect of profitability and liquidity on dividend policy and firm value. It also examines the role of dividend policy as an intervening variable between profitability and liquidity on firm value. Firm value is measured by Tobin's Q, dividend policy is measured by dividend payout ratio (DPR), profitability is measured by return on assets (ROA) and liquidity is measured by current ratio (CR). The population of this study is companies registered in List of Sharia Securities consisting of more than 300 companies. Samples were taken as many as 100 companies with a purposive sampling method. The observation period is 3 years (2016-2018). To test hypotheses using multiple regression analysis. The result shows that profitability is significant and positively effect on dividend policy, while liquidity does not affect on dividend policy. Profitability and dividend policy have a positive and significant effect on firm value, while liquidity has no effect on firm value. Another result of dividend policy is able to be as an intervening effect on profitability of firm value but not as an intervening liquidity relationship to firm value.


2017 ◽  
Vol 5 (1) ◽  
Author(s):  
Maizah Rosita ◽  
Rilla Gantino

The purpose of this research is to determine the effect of The Debt (Long Term Liabilities to Total Assets and Liabilities Total Assets) to the return on assets, return on equity and earning per share. The research used secondary data from annual financial report  of Food & Beverage Company from 2011-2015 listed on BEI,  used  purposive sampling method and used multiple regression analysis. Based on the test result of simultan or test F The Long Term Liabilities to Total Assets and Short Term Liabilities is significant to the Return On Assets, Return On Equity and Earning per share. Result of partial test  or T Test, Long Term Liabilities to Total Assets is not significant on Return On assets, Short Term Liabilities to Total Assets is significant on Return on Assets. Long Term Liabilities to Total Assets is not significant to Return On Equity, Short Term Liabilities to Total Assets significant to Return On Equity, Long Term Liabilities to Total Assets in not significant to Earning per share, and Short Term Liabilities to Total assets is significant to Earning per share.


Author(s):  
Walid Shehata Soliman

Income smoothing is affected by some factors, one of these factors is political costs (PCs) which firms may pay to get information, trading, and negotiation which is imposed by the decision making and legislating authorities. Hence, the association between PCs and income smoothing is tested by focusing on Egyptian Stock Exchange (EGX), especially EGX 30, which included the most active firms, for a ten-year period from 2006 to 2015 for 63 firms, including 417 completed observations, the sample represented 10 different sectors. Two main hypotheses were formulated and tested, the first hypothesis consists of four sub-hypotheses, it was tested using multiple regression analysis, and the second hypothesis tested by testing the moderating effect of Egyptian revolution 2011 on the association between PCs and income smoothing. The findings are; first, PCs proxies have a positive and significant effect on income smoothing, second, there is a negative and significant moderating effect of Egyptian revolution 2011 on the association between firm size only and income smoothing.


2019 ◽  
Vol 2 (2) ◽  
pp. 32-41
Author(s):  
Niraj Acharya ◽  
Sumit Pradhan

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.


2018 ◽  
Vol 6 (1) ◽  
pp. 44
Author(s):  
OWOLABI Adenike Olanrewaju ◽  
AGBOOLA Omoniyi Oladipupo

This paper describes the impact of consumer’s attitude on the purchase of insurance product in Nigeria. The attitudes, most often negative, are mirrored through low patronage of insurance services. Data were collected through the use of self-structured closed questionnaire. The research adopted a descriptive survey design. One hundred and fifty (150) questionnaires were administered, however only one hundred and thirty two (132) were properly filled and good enough for data analysis. The Pearson Product Moment Correlation and Regression Analysis were used to test the hypotheses generated for the study at 0.05 alpha levels. The result of the study showed that there is a significant relationship between customer’s attitude and insurance product. Findings also revealed that there is a significant relationship between product awareness and price. Findings from the survey further revealed that promotion of insurance products have significant influence on consumers buying behavior. Insurance companies are advised to guarantee that their services are dependable and reliable, in that the services should not require an excessive amount of bureaucratic procedure of their customers in taking an insurance policy or getting their claim. Other feasible measures to boost patronage of insurance products were recommended for insurance firms and policy-makers.


2016 ◽  
Vol 3 (2) ◽  
pp. 177
Author(s):  
Abdelrhman Ahmad Meero

The aim of this paper is to examine the determinants of capital structure (profitability, size, risk and growth). The sample is composed of 39 Bahraini firms listed in Bahrain Stock Market. The study covered the period 2011-2015. Correlation and regression analysis have been used to identify the relationship between the capital structure determinants and debt leverages (book leverage and market leverage). Correlation analysis aims to identify this relationship at market level and at sectorial level. Regression analysis objective is to anticipate the models characterizing the relationships between determinants and capital leverages. Results of the analysis shows negative significant relationship between profitability and dependent variables, with more significance relationship with market leverage. This relationship is demonstrated in market level and in insurance and services sectors between profitability and book leverage. When the market leverage is the dependent variable this relationship is valid in market level and in banking, hotels, insurance and services sectors. Positive significant relationship has been found between size and both leverages in market level. Similar result is detected on sectorial level in banking, industrial, investment and services when the dependent variable is book leverage. Size-market leverage relationship is positive and significant also in insurance, investment and services sectors. The relationship risk—book leverage is significant only on sectorial level in Industrial, insurance and investment sectors. In term of market leverage—risk relationship, significant relationship is detected in market level and in investment and services sectors. Regression analysis results present a significant linear model reflecting the relationship between determinants of capital structure and leverages.


2001 ◽  
Vol 88 (3) ◽  
pp. 734-740
Author(s):  
Daniel S. L. Roberts ◽  
Brenda E. MacDonald

The purpose of the present investigation was to examine how measures of imagery, creativity, and socioeconomic status relate to performance in a stock-market trading game. The 368 participants were students enrolled in an administration studies curriculum. A multiple regression analysis showed imaging scores to be a predictor of stock-trading performance as were creativity and socioeconomic status to a lesser extent. High imagers and high scorers on creativity and socioeconomic status made several times more profit with their portfolios. Results are discussed in terms of imagery having multiple repercussions on learning, e.g., memory and problem-solving. It is concluded that scores on imagery, creativity, and socioeconomic status, being weakly correlated, are interdependent and likely associated with personality traits shaped within a stimulating home or social environment.


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